Glossary - L

Lapping Liquidity

Lockbox

Lapping
A scheme to cover an embezzlement by using payments made by one customer to reduce the receivables balance of another customer.

Liquidity
The availability of cash or ability to obtain it quickly. Debt paying ability.

Lockbox
Speeds the availability of funds from cash collections by reducing the time from the customer mailing the check until the funds are available to spend. Remittances are sent to a bank near the customer and the bank deposits funds speedily to the payee's account.

 

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