How your accepted payment method impacts your construction business

Ben / CoConstruct

As the leading construction project management solution, Buildertrend helps the industry modernize every step of the building process. Shouldn’t the way you get paid be just as revolutionary as the tech in your toolbelt?

Small businesses are shifting their operating models to ones that require less personal contact, which includes cashless transactions and an increased need to accept online payments. But not all online payment methods are created equal. Older models – such as check, e-check and ACH – are significantly slower and more cumbersome than their modern card counterparts. For many construction companies, older payment methods delay cash flow and disjoint reporting.

As payment methods shift due to changes in technology, consumer preferences and macroeconomic developments, the payment processing solutions of successful businesses must adjust as well.

Changing payment methods

While legacy payment methods are behind the curve, ACH is still a popular method because of its lower price point per transaction and guaranteed nature, but it also has its shortcomings.

Most notably, ACH takes three to five business days to settle into your bank account. Faster ACH has been available for years, but it is still significantly slower compared to the quick settlement times of digital card payments. ACH transactions don’t come without friction to the payer either. If a fraudulent transaction or a simple error occurs – like debiting an incorrect amount of money – these funds cannot be easily recovered by the payer as they can with a card transaction.

For these reasons, companies are adopting Single-Use Accounts (SUAs) and similar virtual cards as their preferred method of payment instead of ACH. This transaction method allows your clients to maintain tighter control, heightened security and greater visibility into their transactions. These card payments are as easy as transacting with a normal credit card, but they improve cash flow too – for both contractor and client. When a client pays an invoice via card, you’re able to receive the payment in your bank account as soon as that evening.

Impact on your business

There’s more to it than improved cash flow though. Accepting digital card payments allows you to automatically reconcile invoices, minimize friction to transact and decrease receivables latency. From there, you’re able to invest the sum of these efficiencies back into your business, spurring growth and, in economic downturns, maintaining livelihood.

During the COVID-19 pandemic, in particular, businesses have been forced to prioritize cash flow like never before. Buildertrend Payment Processing, powered by Chase, allows funds from approved card transactions to be available in a company’s accounts on the same day they are received, without additional fees. Businesses accepting ACH transactions, on the other hand, have to wait at least two business days due to ACH’s required settlement buffer, limiting flexibility under intense circumstances.

These intense circumstances proved your business is stronger with Buildertrend. Amid this pandemic, construction companies were challenged to use technology to keep work going remotely. It’s all about being better, faster and smarter. Adopting innovative payment methods like this is one more way to make sure your company is better than ever before.

Adopting greater efficiencies

Luckily, it’s never been easier for your business to adopt digital payments. Buildertrend Payment Processing is integrated directly into the software you love, allowing you to apply these benefits to your business in minutes.

Now is an even better time to make the shift since it will open up new possibilities and efficiencies as construction businesses make changes to the way they do business, creating previously unconsidered opportunities aplenty.

Even better, Buildertrend Payment Processing, powered by Chase, is rapidly adding more digital payment solutions to benefit you. For those also banking with Chase, we can offer customers same-day deposits at no additional cost, for example.[1]

With Buildertrend, you’ve taken your business digital. It’s time you take payments digital, too. It’s all about getting paid and paying all in one place, right from the palm of your hand. To start taking advantage of the convenience of Buildertrend Payment Processing, powered by Chase, offers and learn more, check out additional benefits here.

The future of construction payments is here – and it’s Buildertrend and Chase.

[1] All payments processed and approved by 5:00 pm Pacific Time (PT) / 8:00 pm Eastern Time (ET), Monday through Friday, will be deposited into the business owner’s Chase business checking account that night. For businesses in the Eastern Time zone, deposits will occur by 1 am ET. There is no additional cost for Same-Day Deposits but standard rates and fees will apply for business checking and payment processing.  All transactions are subject to WePay’s terms of service and exclusions therein, which may result in delays.  Available in the U.S. only.  JPMorgan Chase Bank, N.A. Member FDIC.

Buildertrend services are provided by Buildertrend, which is not a Chase Company. JPMorgan Chase Bank, N.A. neither guarantees nor makes any representations or warranties of any kind regarding the services.


About the Author

Ben

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