If you’re not getting paid on time for your work, you’re not alone. 49% of construction payments were not paid on time in 2019. It was worse in the last couple of years. 74% of contractors claimed they filed a mechanics lien within the last year. And more broadly, the average for outstanding payments is 90 days. That’s a whole summer without getting paid.
SlowPay is now the norm in the construction business.
82% of contractors say they experience SlowPay. This slowdown affects profitability, employee morale, wastes time, and causes contractors to miss out on new jobs. So what is the root cause of SlowPay? Here’s what contractors are saying:
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- Problems with owners cash flow
- Poor follow up/reminder process
- Giving in to customers too easily
- Choosing the wrong customers
- Poor communication with customers
- Poor invoicing process
- Customer disputes work at the end
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Avoiding SlowPay requires the right skills and the right tool.
Evaluating customers in the beginning helps avoid some problems. Having a platform like PayKeeper allows you to not only close the best customers, but weed out the those customers who wouldn’t be worth the headache.
PayKeeper accelerates payments and creates trust with customers.
PayKeeper is a simple platform that allows a third-party to manage the money throughout the construction or installation process. PayKeeper is a Federally insured escrow account accessible from a phone app. The customer deposits the full amount of the project. Paykeeper distributes money to you, the contractor, as milestones are met. No chasing down checks or waiting 90 days.
The customer is confident and the contractor gets paid on time.
When payments run smoothly, contractors do their best work. Customers are happy and give great reviews. Cash flows and suppliers are confident in your business. PayKeeper improves your cash flow and reduces headaches by 80%. that’s a number we can all live with.
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