Payments
Deep Dive: Construction
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.
Cash flow
maintenance
Over 80% of construction companies say they spend a substantial amount of time chasing payments.
Tight supply
challenges
With building materials of all sorts in tight supply, construction companies scramble to ensure materials will be available when needed.
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.
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.
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.
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
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.”
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