Debunking Digital Payment Myths in the Construction Space
It’s a well-known and documented problem: The construction industry is slower to pay than any other industry – payment terms are 83 days on average! Slow payments can create delays and work stoppages, but the construction industry is so accustomed to the practice that it’s accepted as a natural cost of doing business. In this article, debunking digital payment myths will show you a unique way to take the pain out of construction payments.
Myth #1: Electronic payments cost too much.
Changing methods and rolling out new processes can put a strain on resources, and it can be difficult to predict the ROI. However, relying on manual payments processes is inefficient and prone to human error. In the long run manual payments will end up costing more than a secure, automated solution. Even with an initial upfront expense in terms of human capital, the long-term monetary returns can be very significant.
Related article: How much do paper checks really cost your business?
- Myth #2: Paper checks are secure, why change? Paper checks are becoming a thing of the past, as more Trades are looking for faster, more secure, and more convenient methods. A paper check can take up to six days to clear following the transaction, making management of your books more difficult. You may think paper checks are a tried-and-true payment method, so “if it ain’t broke, don’t fix it”. The truth is, writing checks risker than it ever has been. Each person who sees the checks your company writes is a potential weak link in its chain of custody. All one has to do is pull out their phone and take a quick picture to access all the information it contains. Names, addresses, the banking institution, routing numbers, and account numbers. Checks are an absolute gold mine to fraudulent individuals, and just a single lost or stolen check could cost your company thousands in lost revenue and legal fees. With Sekady’s platform, your financial information along with your payees’ is stored safely and securely. Sekady exceeds bank-grade security standards and is SOC2 certified – ensuring your information is secure. Myth #3: It’s too hard to change the way it’s always been done. In many cases, changing to a digital method requires significant time spent onboarding your Payees, and your company. This can be a significant hurdle for General Contractors to overcome because the return on investment can be unclear. Sekady’s platform was created by a General Contractor and designed with simplicity in mind. The Customer Success team takes on the bulk of the legwork involved in getting your Trades on board and providing training and resources.
- Our staff onboards Subcontractors and Vendors (Payees)
- All draws are processed through our platform
- GC maintains oversight and approval on all payments
- Lien waivers are signed and captured digitally
- Trades and Vendors choose expedited OR your standard payment terms
It’s easy to get bogged down with the time-consuming work of handling payments manually. Sekady’s platform can eliminate resource-draining admin work and provides a secure way to process payments. Your Trades and Vendors will love you for it!
NEXT: Protect your project and improve efficiency with digital lien waivers.