A lockbox is an account which cannot be touched. When youre running a business, its important to keep track of your cash flow so that you dont spend more than you really have. By saving cash in a lockbox, you protect not only your immediate business savings but also your clientss accounts. Remember that your customers rely on you to continue giving fine service–even if you are in financial straits.
In fact, when you think about the cost benefit calculus of opening and running a private shop, you understand that your income generation is critical to your success. If you dont save up money in a lockbox, and something happens to you or your business, you may end up without the capital you need to get back on your feet. While you ultimately may be able to scrounge for the money you need, by that time it may be too late to salvage your customer relationships.
Protecting Your Lockboxes
As you can see, protecting your accounts is of critical importance. However, recognize that your customers are in a similar bind. Given the constraints on their spending, they may not be able to shop with you unless you offer them lenient payment options. While most retailers these days offer credit card payment arrangements, these may be insufficient for many shoppers.
Fortunately, theres a way for you to set up your payment procedure wherein you dont force customers to raid their own lockboxes to pay for your goods and services. By employing ACH checking, you enable clients to extract money directly from their savings accounts. That way, everyones budget stays on track.
