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Collection Time
The typical duration a company waits to collect payments from its clients following a sale.
Lockbox System
A service offered by banks to process payments quickly by having those payments mailed directly to a secure post-office box, from which the bank collects and deposits into the company's account.
Cheque Clearing
The process by which banks settle transactions made by cheques, transferring funds from the issuer's account to the payee's account.
Total Collection Time
The total time taken from issuing an invoice to the receipt of payment from customers.
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