Lockbox (accounts receivable)

Imagine you have a piggy bank where you keep all the money you receive from your friends for doing their chores or for your birthday. Sometimes, you have so many coins and notes that your piggy bank becomes so heavy that it's hard to move. But you don't want to leave it in your room because someone might steal it.

A lockbox is like a really big and strong piggy bank that companies use to keep all the money they receive from their customers in. Instead of staying in one person's room, though, it usually stays in a bank or another secure place specially designed to keep it safe.

When a customer pays a bill, the money is sent directly to the company's lockbox. The company doesn't have to worry about losing the money or processing payments themselves because the bank will take care of everything for them.

Then, the company can easily check how much money they received and start using it to buy new things, pay expenses, or just save it for later. It's kind of like having a safe place to put your allowance or birthday money until you're ready to spend it.