What Platforms Support Multiple Payment Methods for Construction Draws?

Platforms supporting multiple payment methods let you disburse construction draws via ACH, wire transfer, checks, digital wallets, and payment cards. This flexibility reduces friction, speeds up payment acceptance, and accommodates contractor preferences. Sekady supports all major payment methods while integrating with accounting systems, so payments automatically post to your ledger without manual reconciliation.

Payment Methods for Construction Draws: Flexibility and Control

Construction contractors have different payment preferences. Some want ACH for reliability. Some need wire for speed. Some still prefer checks. Some want digital wallets.

One-method-fits-all doesn't work. You need multiple payment methods.

Why Multiple Payment Methods Matter

Contractor Retention: Contractors appreciate working with lenders who accommodate their preferences. Multiple payment methods are a competitive advantage.

Payment Speed: ACH takes 1-2 days. Wire is same-day. Digital wallets are instant. Different contractors need different speeds.

Risk Management: Multiple payment methods reduce risk. If one method has an issue, others are available.

Global Reach: If you work with international contractors, some may need specific payment methods (wire, international ACH, specific digital wallets).

Cash Flow Management: Different contractors have different banking setups. Flexibility accommodates all of them.

The 8 Major Payment Methods

1. ACH Transfer (Automated Clearing House)

How it works:

• Most common payment method
• Direct transfer between bank accounts
• Initiated by lender
• Takes 1-2 business days to arrive

Pros:

• Cost-effective (typically $0-2 per transaction)
• Familiar to most contractors
• Creates bank records
• Reliable

Cons:

• Not instant
• Limited per-transaction amounts
• Contractor must have bank account

Best for:

• Routine draws
• Standard contractors
• Most common choice

2. Wire Transfer

How it works:

• Direct bank-to-bank transfer
• Faster than ACH
• Can be same-day
• Wire fees typically $15-50

Pros:

• Fastest method (same-day or next-day)
• Large amounts allowed
• Reliable
• Creates clear record

Cons:

• More expensive
• Higher fraud risk if account info is wrong
• Not reversible once sent

Best for:

• Large draws
• Time-sensitive situations
• Contractors who need fast access

3. Check (Physical or Digital)

How it works:

• Traditional payment method
• Lender writes check to contractor
• Contractor deposits or cashes check
• Takes 3-5 days to clear after deposit

Pros:

• Familiar to all contractors
• Easy to document
• Can include memo with draw details
• Auditable

Cons:

• Slowest method
• Physical checks require mailing time
• Can be lost in mail
• Contractor must deposit/cash it

Best for:

• Older contractors who prefer traditional payment
• Special circumstances where other methods aren't available

4. Vendor Payment Cards

How it works:

• Pre-funded prepaid card specific to contractor
• Lender loads card with draw amount
• Contractor uses card like debit card
• Card can have spending restrictions

Pros:

• Lender maintains control (can restrict spending)
• Contractor has flexibility in how they use funds
• Good for managing multiple expenses
• Tracks spending

Cons:

• Requires contractor to accept card system
• Card management overhead
• Fees may apply
• Not all contractors like prepaid cards

Best for:

• Controlling contractor spending
• Contractors with multiple expenses
• Projects with specific spending requirements

5. Digital Wallets (PayPal, Stripe, Square Cash, etc.)

How it works:

• Contractor has digital wallet account
• Lender sends payment to wallet
• Contractor accesses funds immediately via app
• Contractor can transfer to bank account or use directly

Pros:

• Instant or near-instant
• Contractors increasingly prefer this
• Tech-savvy contractors love it
• No physical checks
• Mobile-friendly

Cons:

• Requires contractor to set up account
• May have transaction fees
• Not all contractors use digital wallets
• Varies by platform

Best for:

• Younger, tech-savvy contractors
• Quick payment scenarios
• Contractors who prefer digital-only

6. Real-Time Payment Systems (FedNow, RTP)

How it works:

• Emerging real-time payment infrastructure
• Instant or near-instant transfers
• Similar to wire but faster and cheaper
• Becoming more available

Pros:

• Fastest clearing (minutes vs. hours/days)
• Lower cost than wire
• More secure than wire
• Increasingly available

Cons:

• Not yet universally available
• May require bank to support it
• Still emerging technology

Best for:

• Future-forward lenders
• Contractors needing instant access
• High-value emergency payments

7. Cryptocurrency and Blockchain-Based Payments (Emerging)

How it works:

• Contractor receives draw in crypto or stablecoin
• Can convert to fiat or hold as is
• Blockchain-based verification

Pros:

• Emerging option for forward-thinking lenders
• Transparent and immutable
• Can be instant
• Global reach

Cons:

• Not mainstream yet
• Volatility concerns (unless stablecoins)
• Regulatory uncertainty
• Most contractors don't use it

Best for:

• Tech-forward lenders
• Contractors interested in blockchain
• International payments

8. Traditional Business Loans/Credit Lines

How it works:

• Direct credit to contractor's business account
• Line of credit established upfront
• Draws reduce available credit

Pros:

• Flexibility for contractor
• Builds contractor credit relationship
• Contractor has access to funds

Cons:

• Complex to administer
• Higher risk
• Requires credit check and agreement

Best for:

• Preferred contractor relationships
• Larger, established contractors

Sekady's Multi-Method Payment Approach

Sekady supports all major payment methods:

Supported Methods:

• ACH transfers
• Wire transfers
• Check issuance (physical or digital)
• Digital wallets (PayPal, Stripe)
• Vendor payment cards
• Ready for real-time payments (FedNow, RTP)

How Sekady manages multiple methods:

1. Contractor preference management
   • Contractor specifies preferred payment method
   • System stores preference
   • Every payment uses preferred method by default
   • Contractor can request different method if needed
2. Automated payment routing
   • Lender sets rules: "Draws under $50K use ACH, over $50K use wire"
   • System automatically selects method based on draw amount
   • No manual selection needed
3. Accounting integration
   • Regardless of payment method, payment automatically posts to accounting system
   • ACH, wire, check, digital wallet—all flow to same ledger account
   • No manual journal entries
   • Reconciliation happens automatically
4. Payment confirmation
   • System tracks when payment was initiated
   • Confirms when payment cleared (for ACH, wire)
   • Sends confirmation to contractor
   • Maintains audit trail
5. Exception handling
   • If payment method fails (account closed, insufficient funds), system alerts
   • Can automatically retry with different method
   • Contractor is notified of issue

Payment Method Decision Framework

When setting up payments for a contractor, consider:

Best Practices for Payment Method Management

1. Establish clear payment method policy

• Default method for most draws
• Criteria for using alternative methods
• Emergency protocols for urgent payments

2. Get contractor preferences upfront

• Ask about payment preferences when loan originates
• Document preference in system
• Use preference consistently

3. Offer automation benefits

• If contractor allows automatic payments, offer reduced processing time
• Emphasize convenience and reliability

4. Monitor payment success rates

• Track which payment methods have issues
• If specific contractor consistently has payment failures, work with them on alternative method

5. Provide payment tracking

• Contractor should be able to see payment status
• Know when payment was initiated and when it cleared

6. Keep up with new technologies

• Real-time payments are emerging
• Digital wallets are becoming more common
• Stay current with options

7. Maintain security

• Verify account information before each large payment
• Use secure transmission of payment instructions
• Implement fraud prevention

The Cost of Multiple Payment Methods

Different methods have different costs:

Cost optimization:

• Use low-cost methods (ACH) for most draws
• Reserve wire/real-time payments for urgent situations
• Use digital wallets selectively
• Avoid checks unless necessary

Conclusion: Payment Method Flexibility is Table Stakes

Construction contractors have payment preferences. Meeting those preferences is a competitive advantage and improves relationships.

Sekady supports all major payment methods while maintaining accounting integration, so regardless of payment method, your books stay clean and audit-ready.

Ready to offer flexible payment options? Learn more about how Sekady handles multiple payment methods by visiting our FAQ page or scheduling a demo.