Lockbox
An arrangement where a business's customer payments or daily deposits are routed through a bank account controlled or monitored by the funder before the business's share is released.
A lockbox structure gives the funder direct visibility and some control over incoming deposits, which is a more involved collection method than a standard ACH withholding, and it’s typically used in larger or higher-risk deals where the funder wants tighter oversight of cash flow.
For the business, a lockbox arrangement means daily revenue passes through an extra step before becoming available, which is worth understanding clearly before agreeing to that structure over a simpler remittance method.
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.