Lockbox services aren’t just for large corporations, and they’re not a one-size-fits-all solution, either.
Small businesses across different industries, various sizes, and annual revenue can improve their operations with the use of lockbox services.
Lockbox solutions are for organizations of all sizes.
With different kinds of lockbox services to choose from, small businesses often benefit from solutions that are tailored to fit their needs with the flexibility to scale – without reinventing their operations.
As a provider of lockbox solutions for nearly four decades, FirsTech is a leader in partnering with small businesses and finding custom solutions that allow them to grow.
How can a lockbox service improve my small business?
Lockbox services help streamline your receivables process so that you can focus on running your small business. This looks like:
- Simplified Deposits: a single ACH deposit rather than individual transactions. This keeps the cash flow steady, makes your reporting more accurate, and keeps your statements organized.
- Accurate Reporting: Your transaction data is delivered separately from the individual transactions. This allows you to integrate the data directly into your CRM, or import it into your A/R system without any additional processes that leave a larger margin for error. Reports are also automatic which means your systems are up-to-date and you can handle customer inquiries, budget decisions, and forecasts at any time knowing that your data is current.
- Faster Processing: Relieving your internal team from processing payments is not only safer, but it’s faster, too. Leaving your receivables to experts, automating processes, and reducing in-house processes leads to faster and more secure operations all around. In addition to these benefits, managing your exceptions process ensures fewer days of sales outstanding, getting you paid faster.
- Lower Costs: Lockbox services consistently save small businesses money, regardless of the type of service or volume of transactions. With reduced processing and transaction fees, you see more of each payment that is processed. This benefit, combined with streamlining operations and reducing inefficiencies placed on internal resources, means that your business is freeing up more time, and receiving more money.
Types of Lockbox Services for Small Businesses
The differences between lockbox services are mostly operational details. On the backend, they all function similarly in that they:
- Simplify your ACH deposits into a single daily transaction
- Simplify transaction processing and reporting
- Reduce your internal costs and labor
Between the different types of services, different lockbox services accept varying forms of payment, might report on different schedules, and have unique functions that can fit the specific needs of a small business. These functions might include CRM integration, net wholesale terms, or automation capabilities.
Regardless of their differences, they all serve one overarching purpose: to simplify your operations and create efficiencies which benefit your bottom line.
eLockbox Services
While its name might be misleading, eLockbox services accept more than just electronic payments. Think of it as a traditional retail lockbox with additional electronic functionalities.
eLockboxes accept all types of payment methods including payments through online portals, mobile payments, eChecks, credit cards, or physical checks.
Because of this diverse offering, small businesses can scale and grow by offering various electronic payment options without paying for individual processing transaction and service fees. This also helps a growing business meet the demands and preferences of the modern customer with flexible payment options.
The electronic capabilities of an eLockbox also means that transaction and remittance records can be easily integrated into a CRM, allowing businesses to use their internal labor and resources for specialty roles and have an organized record system that can grow with them – saving them from costly organizational updates down the road.
With an eLockbox service, small businesses save money on transaction costs, keep their records organized, and connect the various consumer-facing teams through one payment service.
To learn more about the details eLockboxes, here’s an article that can help: https://www.firstechpayments.com/elockbox-services/
Retail Lockbox Services
Retail lockbox services are most like traditional lockboxes. They allow you to accept physical payments directly from your customers.
This service is most used in small businesses with a high volume of payments that are similar to each other, like loans, services, or utilities.
A lockbox in a retail environment can help you reconcile accounts.
The efficiency and cost savings of retail lockboxes is derived from the streamlined and automatic payment processing. With high volumes of similar transactions, payment slips can be designed for processing without manual oversight. When there is an exception – whether a typo or missing signature, or more structural problems like a stop payment, it’s manually processed and corrected in the system for the next payment so the exception delay is eliminated on future payments.
While a more specialized solution, retail lockboxes are a powerful tool for small businesses that can free your internal resources from processing, reporting, and reconciling accounts while also saving on transaction costs.
With the daily ACH deposit, these payments are processed faster and your cash flow remains steady and consistent.
Wholesale Lockbox Services
For small businesses with a lower volume of payments at a higher payment amount, wholesale lockboxes offer a streamlined solution.
Unlike retail lockboxes which specialize in a high volume of checks at a lower dollar amount, wholesale lockboxes offer an ideal solution for businesses and industries who use an Accounts Receivables format.
With a partner like FirsTech, your wholesale payments are received in a fully-integrated image-based system with data integrity and security at top of mind. When a payment is received, these digital images are delivered directly into your A/R system, eliminating room for error, reducing internal resources, and expanding your capabilities in generating reports and analyses.
FirsTech also offers an exclusive Online Exception Management Portal where you can view and update any invalid account information for exceptions and minimize delays in your posted payments.
This combination of accessibility, security and efficiency make wholesale lockboxes an ideal solution for many B2B small businesses.
Custom Lockbox Services
A variety of custom lockbox services are also available for small businesses to find efficient solutions that optimize their operations.
Some varieties like the “Wholetail” option combine the low volume and high value payments of wholesale lockboxes with the high-volume automatic processing of retail lockbox services: serving both sides of your receivables without any internal processing yourself.
A Lockbox solution can help you streamline your business.
Other options include combining your eLockbox functionalities with a traditional lockbox where your individual retail payments and your bulk automated payments are all efficiently sent to your CRM daily.
FirsTech has been serving businesses like yours for decades and can offer custom-designed services to fit the unique needs of your small business. If you’re not sure what you need, a professional service member can help.
Which kind of lockbox service does my business need?
However your customers remit payment to your business, there is a lockbox solution that can assist in streamlining the receivables process to be faster, more cost-effective, and secure.
FirsTech has been assisting small businesses like yours for nearly forty years, providing safe and secure remittance services and lockboxes.
With a commitment to providing innovative systems, processes and services of the highest quality, along with our dedication to data and payment security, your business has a partner in the payments industry that is dedicated to your success.
For more information about how FirsTech can help you achieve your business objectives, contact us today.