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A Wholesale lockbox system is: Used for business to business trade Handles a small number of...

A Wholesale lockbox system is:

  1. Used for business to business trade
  2. Handles a small number of large-value payments
  3. Parts “a” and “b”
  4. None of the above  
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Answer #1

Answer: Option C

Wholesale lockbox is used for business to business trade that inclues low volume but high value payments.It is used by banks that helps them to collect funds more easily through reducing processing and other delays enabling employees to process and collect the cheques more fastly of company's customers.

Under this funds deposited by company's customers are routed to a special box,later on bank releases and process payments in the box and transfers them to a comapny's account.

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