Payments
Deep Dive: Construction

Take a close look at the state of payments, the challenges construction companies face, and the areas where you can seize opportunity and grow your business.

The shape of payments in the construction industry today.

The construction industry’s payment ecosystem is highly complex. Individual construction jobs function like a mini company with distinct owners, business entities and an ever-changing roster of local and specialty contractors, subcontractors and suppliers. Inherently large financial risks are involved and money moves slow. Construction suffers from one of the longest Days Sales Outstanding (DSO) at 51 days. One in five companies do not use any accounting/operations software. By automating and streamlining payments, construction firms can unlock value from suppliers and manage cash flow much more efficiently and effectively.

Key Payment Challenges

Construction firms are facing some common challenges.

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Cash flow
maintenance

Over 80% of construction companies say they spend a substantial amount of time chasing payments.

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Tight supply
challenges

With building materials of all sorts in tight supply, construction companies scramble to ensure materials will be available when needed.

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Slow legacy
payment methods

Most construction firms operate in the world of paper bids, invoices, and checks—a significantly longer process than digital payments.

Plastiq Solutions

Plastiq Accept and Pay help meet these challenges.

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Preserve cash on
hand

Plastiq Pay increases working capital by allowing firms to use existing credit cards to pay suppliers and contractors faster, while extending the time a bill is due up to 105 days.

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Great supplier
relationships

Paying suppliers on time, or ahead of time helps you stay ahead of the competition and ensure supplies are received and projects stay on track.

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Reduce Days Sales
Outstanding

Plastiq Accept facilitates efficient ways to get paid sooner and increase automation, so you don't get bogged down in legacy payment methods.

Plastiq solves payment problems before they're problems.

Promotes real-time payment collection

Promotes real-time payment collection

Tracks open “unpaid” payment requests

Tracks open “unpaid” payment requests

Advanced reporting & real-time notifications

Advanced reporting & real-time notifications

End-to-end payment reports

End-to-end payment reports

Flexibility to adjust to payment challenges

Flexibility to adjust to payment challenges

Automated process shortens collection times

Automated process shortens collection times

More flexibility—offers multiple options

Offers more flexibility with multiple options

Enables card acceptance for budget-constrained SMBs

Enables card acceptance for budget-constrained SMBs

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Use Plastiq Pay and

keep cash on hand

in your hands.

Plastiq Pay helps construction companies preserve cash on hand so they can pay suppliers fast, lock in materials, and pay employees and subcontractors on time, which might be weeks before they are paid for the project. Plastiq helps evolve their payments processes with a simple, all-in-one service for paying and getting paid.

Fox Financial uses Plastiq to keep
cash coming in.

The challenge: Construction suffers one of the lengthiest DSO rates, 51 days on average. CEO Stuart Fox says “I would often have to tell suppliers, ‘sorry we haven’t been paid yet, so we can’t pay you for three weeks.’ [This] is just the norm in construction.”

The Plastiq solution: Plastiq Pay let Fox use existing credit cards to start paying suppliers earlier. “Plastiq has helped me manage cash flow and pay bills ahead of having the cash on hand.”

Think Plastiq is right for your business?

Reach out for more information or to request a demo.

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