No Luck Required: Transform Your A/R Operations with Advanced Lockbox Processing Solutions

When it comes to your accounts receivable (A/R) operations, your business shouldn’t have to rely on luck. 

Businesses don’t need luck—they need a back-office payment processing solution that seamlessly automates and consolidates payment acceptance, processing, posting and management. 

If your internal A/R team is still buried in paper checks, manual data entry, and slow reconciliation processes, you might feel like you’re still stuck searching for a four-leaf clover. In a clover patch of disparate systems and legacy processes, an A/R automation platform will deliver the payment processing solution you and your internal team needs. 

With true A/R automation, your business can utilize an advanced lockbox processing solution to streamline the acceptance, processing and posting of paper checks. It’s like finding a pot of gold at the end of a rainbow!

Traditional lockbox processing has long been a standard method for handling large volumes of incoming checks and remittance documents. However, legacy methods and solutions typically come with significant inefficiencies. Payments arrive at a designated P.O. box where they are manually retrieved, sorted, scanned and keyed into back-office systems. And, the more payments a business receives, the more overwhelming and inefficient the process can become.

Additionally, businesses that rely on these outdated methods of check processing often struggle with delays in back-office cash application, as well as limited visibility into incoming payments. 

In today’s fast-paced payments landscape, cash flow is golden. Traditional lockbox and check processing solutions have not lent themselves to keeping pace with an ever-changing environment.

According to a PYMNTS report, nearly 3 in 5 U.S. businesses contend with late B2B payments. A chief culprit of enduring payment delays is paper-based, manual methods. Additionally, according to a 2024 survey, 75% of these same businesses still use paper checks.¹

With A/R automation solutions that deliver advanced lockbox processing, businesses are able to drastically reduce payment bottlenecks and streamline check processing operations. 

Today’s leading lockbox processing solutions can reduce or completely eliminate manual inefficiencies by fully automating the acceptance, processing, and posting of incoming check payments. By leveraging Advanced Remote Deposit Capture (RDC) and Enhanced Document Processing (EDP) technology, as well as cash application automation, check payments and associated remittance documents are able to be captured digitally and applied automatically.

Embracing receivable automation solutions that can handle both traditional payment methods such as checks, as well as other payment methods including ACH, credit/debit card and cash, is a necessity for organizations to continue adapting to a rapidly changing payments environment. 

With modernized lockbox processing solutions that accelerate payment acceptance and cash application, reduce errors, eliminate manual data entry, and provide real-time consolidated insight into receivables, businesses can streamline workflows and gain better control over payment processing operations—no luck required.

Is your business ready to transform check processing operations? Stop wishing for luck, and trade in the traditional check processing methods and systems for cutting-edge A/R technology.

1.  PYMNTS Report, Cutting the Checks: Boosting Commercial Payment Speed | 2024