Lockboxes

In my previous posting, I wrote about Virtual PO Boxes. Another similar handy service I use for my own business is a lockbox, which is something my bank offers. It is basically a PO Box I use just for checks that are mailed to me, like for affiliate payments or invoice payments. I get over 100 checks like this a month, and with the lockbox my bank automatically deposits the checks to my bank account on a daily basis, and then sends me copy of each check for my records. Before I had a lockbox, I had to go to the bank several times a week to deposit checks (yes, I know, if having to go deposit money is my biggest problem in life, then I have it easy). Also, one time before I had the lockbox, I was out of town for 3 weeks, and checks piled up in mailbox but I had no cash in my bank account and I bounced some checks due to automated payments that were taken out while I was gone. So, having a lockbox solves this problem.

For larger companies, another advantage of a lockbox is that you start getting interest right away on the checks you receive. Instead of having checks sit in a pile on your desk for several days earning no interest until you make a trip to the bank to deposit them, you start getting interest on them right away with a lockbox.

Sometimes a company will enclose a letter or notice with the checks. My bank forwards those to me, so that is not a problem. The only downside to a lockbox is that it is expensive. I pay around $200/month, although there are probably ways to get one cheaper.