Accelerated Reply Mail - ARM

AAA

DEFINITION of 'Accelerated Reply Mail - ARM'

An expedited delivery of business reply mail offered by the U.S. Postal Service. Reply mail may be routed to a postal facility other than the one to which the mail is addressed, and is available for pickup by the ARM customer, or reshipped by express mail to the customer. The ARM service is generally used to receive orders and payments faster, thus reducing order-processing times and enabling more efficient cash management.

INVESTOPEDIA EXPLAINS 'Accelerated Reply Mail - ARM'

Since there are costs involved in using the ARM service, it only becomes economical above certain thresholds for reply mail volumes. While the ARM service may not offer an attractive payoff for small businesses, it may be a necessary cost of doing business for larger companies. For such companies, faster receipt of receivables improves cash flow, thereby providing a return on investment that may be an order of magnitude higher than the cost of the service.

RELATED TERMS
  1. Advertising Budget

    An estimation of a company's promotional expenditures over a ...
  2. Promotion

    1.In terms of a career, a promotion refers to the advancement ...
  3. Cash Management

    The corporate process of collecting, managing and (short-term) ...
  4. International Reply Coupon - IRC

    A coupon that can be exchanged for the adequate minimum postage ...
  5. Receivables

    An asset designation applicable to all debts, unsettled transactions ...
  6. Occupational Safety And Health ...

    Law passed in 1970 to encourage safer workplace conditions in ...
RELATED FAQS
  1. What happens if a company doesn't think it will collect on some of its receivables?

    The accounts receivable account, or receivables for short, is created when a company extends credit to a customer based on ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.
  2. Entrepreneurship

    Small Business: Speed Up Receivables To Avoid A Cash Crunch

    Waiting for customers to pay can be a losing game. Look to factoring for quicker cash.
  3. Markets

    Company Survival: Cash Conversion Cycle Is Key

    Find out how to use this figure to analyze a firm's financial condition.
  4. Investing

    What's a Debit Note?

    A debit note is a document used by a seller to inform a purchaser of a dollar amount owed. As the name indicates, it is a note from the seller that a debit has been made to the purchaser’s account. ...
  5. Professionals

    What does C-Suite Mean?

    C-Suite is a slang term used to describe the highest level senior executives of a corporation. This is the decision-making, power center of a company. These individuals are usually paid well, ...
  6. Investing

    What's a Monopolistic Market?

    A monopolistic market has a significant number of characteristics of a pure monopoly. Though there may be more than one supplier, the market has high prices, suppliers tightly control availability ...
  7. Professionals

    What's Human Capital?

    Human capital is a company asset, but it’s not listed on the balance sheet. Human capital is all of the creative skills and knowledge embodied in the employees of a company -- skills that bring ...
  8. Investing

    What's Capitalization?

    Capitalization has different meanings depending on the context.
  9. Investing

    Deferred Tax Liability

    Deferred tax liability is a tax that has been assessed or is due for the current period, but has not yet been paid. The deferral arises because of timing differences between the accrual of the ...
  10. Investing

    Who are Stakeholders?

    “Stakeholder” is used in commerce to describe any party who has an interest in a business or enterprise. Traditionally, stakeholders in a corporation are shareholders, employees, customers and ...

You May Also Like

Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  4. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  5. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  6. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
Trading Center