When Oliver's Oil Company bills its customers, it has them send their payments to an address that is just for receiving payments, instead of directly to the company's mailing address. Although this system costs Oliver's Oil Company a lot of money, it is worth it because the company receives thousands of checks from customers each business day. What system is this company using to receive its payments

Question

Business

Miles Watson

23 August, 16:48

When Oliver's Oil Company bills its customers, it has them send their payments to an address that is just for receiving payments, instead of directly to the company's mailing address. Although this system costs Oliver's Oil Company a lot of money, it is worth it because the company receives thousands of checks from customers each business day. What system is this company using to receive its payments

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Answers (1)

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Moshe · Answer 1

A lockbox

Explanation:

Lock box system is a form of service rendered by banks in assisting companies to collect payments from their customers especially in a situation where large volume of transaction is involved

The company opens a postal mail opens a postal mail where he instructs all customers to send their payments, The bank the go to this mail to collect payments and proceed to process them into the customers account.