The Company can then make borrowing or investment decisions. Company employees receive free checking as an additional benefit for using the direct deposit service at People's Bank. A Company can transfer funds from a depository account held at another bank into People s Bank on an overnight basis using EDTCs. In the event of surplus funds and no balance outstanding against the LOC, the bank will invest the funds in an overnight investment account. The primary benefit of a lockbox is the minimization of collection float.
Customers send their payments directly to the bank, bypassing the company completely.
The bank processes the payments and makes the necessary deposits into the company s account. All documentation is forwarded to the company for further review. Since all payments are processed and deposited same day, the company gains faster access to their cash. This service saves the company time since they no longer have to process their payments and also alleviates the need for daily trips to the bank to make deposits. This service is used to combat check fraud.