It’s no secret that payments are a sore topic in the construction industry. But construction software companies can respond by leveraging payment integrations that offer useful functionality to their customers keeping their software competitive in a newly digitized age.
Here’s what software developers should consider integrating when addressing construction billing methods within their software.
Provide A Complete Payments Overview
Making and receiving payments should be convenient, and ISVs that integrate with our value-added products can look forward to offering a hassle-free experience for their construction clients.
A service to consider integrating is an accounts payable feature. One use case is for general contractors who have laborers to compensate. They could pay laborers in cash, but that would mean carrying around large amounts on payday, increasing chances of theft. They could also cut checks, but this can get expensive due to rising printing and processing costs.
Instead, this solution enables contractors to provide payment cards to their laborers, which are digitally topped up with daily or weekly wages. In turn, the risk is reduced for all parties and saves costs. It is also a viable option for those who cannot accept direct deposit because they do not have a bank account at a traditional financial institution.
Building construction software should also make it simple to receive payments. To start, they should integrate various payment methods that make construction clients comfortable when they are ready to pay invoices. Popular payment methods such as credit and debit cards and contactless payments from digital wallets are secure and efficient, building trust while cutting down on transaction times.
Through these products, ISVs can streamline the accounts payable and receivable process for their customers, giving them resources to control both sides of payment processing under one partnership. As a result, construction businesses get an accurate view of their cash flow and business health based on real-time payment data.
Promote Flexibility Through Alternative Financing
For remodelers and businesses with high average tickets, getting paid can be a challenge, especially when dealing with customers who are price-sensitive or wary of debt.
Construction businesses shouldn’t have to extend payment deadlines with the hopes that it will give their customers enough time to make payments in full. Instead, ISVs can offer tools that allow their construction customers to provide short and reasonable payment terms for clients and, at the same time, encourage faster payments.
When construction clients receive a large ticket, it may require them to search externally for financing. They may approach a bank for a loan or talk to their mortgage lender for a line of equity. All of this takes time. However, ISVs can choose to provide a more convenient way to ensure their customers are getting paid in a timely fashion: instant financing.
With Global Payments Integrated’s Delay Pay product, ISVs can include installment payments as an option whenever they send billing estimates and payment requests. After entering some information, customers have the opportunity to choose to finance from multiple lenders. The situation ends up being a win-win, where construction businesses will get paid upfront while a legitimate lender manages the financing.
By choosing to integrate alternative financing into their software, ISVs can enable their businesses to upsell construction projects and offer construction clients viable payment solutions without worrying about outstanding balances.
Stay Competitive With Paperless Payment Methods
Consumers are getting used to contactless, digital, and cashless payments; it won’t be long until they expect every industry they interact with to provide these types of payment options. Also, getting paid quickly and on time would address a top pain point for many construction companies.
To address both sides, ISVs in the construction space should offer the following payment functionalities to keep up with their competition:
- Card on file: This allows contractors or construction businesses to charge progress billings and any other recurring payments to a client’s credit card on agreed-upon dates until the project is complete.
- Text to pay: Have clients receive and view invoices quickly via a secure text or email payment link that makes it convenient to pay. Program automatic payment reminders to clients that have outstanding bills.
- ACH: For those who need to pay sizable initial deposits, ACH is a great way to facilitate this as it has low processing fees relative to wire transfers.
- Card present / EMV card acceptance: Home services companies with technicians out in the field prefer collecting payment after a completed service. We offer the ability to do so through a software’s mobile app or traditional hardware options.
Upgrade Building Construction Software With Integrated Payments
ISVs have the opportunity to improve construction billing by integrating management tools that promote payment visibility throughout the entire lifecycle, flexible financing, and preferred payment methods for clients. To learn more about our products and our partnership benefits, contact us.