Imagine you have just been hired as the Treasurer and CFO of a new company which has customers in 50 states and is a spin-off from an existing larger company, and as a result of this separation, you need to build a cash management infrastructure from scratch. Based on what you’ve read this week and your other research (as well as business sense), what are your most significant concerns in this overall effort?
As part of your overall cash management system, you might consider discussing a “lockbox” system with your banking partner. What does this system entail and what are its benefits? Are such accounts relevant anymore at a time of increased usage of electronic payments?
What is the benefit and the possible cost to an organization of the increased usage of electronic payments for paying vendors?”
