The Phoenix-Hecht Collection Model™ utilizes an optimization calculation designed to analyze or fine-tune a corporation's current collection system and to evaluate the performance of alternative lockbox providers based on the unique characteristics of a corporation’s customer base. Lockbox providers license the model as an analytical tool to help corporate customers and prospect make an informed decision. The analysis is performed for little or no cost to the corporation. The model can evaluate any remittance activity. The remittance data available from the inquiring corporation determines the model's optimization routines and degree of accuracy.
The output from the Collection Model™ addresses three key concerns of a corporation: the performance of existing lockbox, sites selection of alternative processing sites and the assignment of customers by geographic area to lockbox locations. Principal benefits derived from a study are an improvement in funds availability and a possible reduction in processing costs. An increase in receipt of electronic payments instead of checks typically results in sub-par performance of an existing lockbox site especially if the site was established based on large customer remittances.