lockbox definition by Webster's New World
- a box with a lock, used for securing items of value, as a safe-deposit box, a strongbox, a post-office box, etc.
- an electronic device which can block designated cable TV channels to prevent viewing by unauthorized persons
lockbox - Business Definition
- A service offered by a commercial bank that collects and immediately gives credit for customer payments made to a business client. The business directs its customers to send payments to a post office box that is checked on a regular basis by the bank providing the service. The lockbox service is a cash-management system that allows a business to more quickly gain access to payments received from its customers.
- A small box containing an entry key to a home being offered for sale. The box is placed on the front door and is accessible by real estate agents who have a key or combination to the lockbox.
lockbox - Investment & Finance Definition
An accounts-receivable management system in which customers mail payments to a post office box affiliated with the company’s bank. Bank employees check the box frequently, deposit checks into the company’s checking account, and then either electronically transmit or telephone the check details to the company’s accounts receivable department. The process gives the company access to its money more quickly and saves the company from hiring more staff to process the checks. The bank charges a fee for the lockbox service.