What is the meaning of lockbox?

1. A cash management arrangement designed to reduce delays in depositing funds into the payee's bank accounts. A post office box that is established by a bank to receive checks for its cash management customers.' lockbox'es are utilized to accelerate deposits to the bank by eliminating internal processing by the payee organization. The bank need not maintain a separate post office box for each lockbox customer. Instead, it can sort mail received in a common box. 2. A secured lending control arrangement. Under this arrangement, the borrower's account debtors mail their payments into a post office box that is controlled by the bank. The funds are then applied by the bank to reduce a loan to the borrower that is secured by those accounts receivable. The bank need not maintain a separate post office box for each lockbox customer. Instead, it can sort mail received in a common box.