Many construction companies have avoided taking credit cards because they imagine that small business credit card processing is expensive and will cut into their profit margin. So instead, they take checks when the service is completed or wait weeks for the customer to get around to paying the bill. Both are dangerous to a company’s cash flow and financial security.
Taking checks for contracting services instead of small business credit card processing is inherently risky. The company can’t exactly repossess a kitchen remodel or a new deck, and determining just by looking at it if a check is going to clear is a virtually impossible task. And, even if the check is good, most banks will hold the check for several days before making all the funds available for your business. Add to that the extra trip to the bank to deposit the check in the first place, and it becomes clear that accepting checks instead of credit cards is costing you money.
Lock down the job when you provide the estimate. By offering to accept a deposit for the job immediately to lock in the schedule and commit the client to the quote, you can accept the deposit for the work on site with your mobile phone and confirm more jobs. This simple practice of immediately accepting a down payment at the time of the estimate has proven to increase the percentage of jobs won by our clients up to 30% more.
When the job finishes, sometimes the customer isn’t home to oversee the project, or they just want to hold on to their money, which should be your money, a little longer, and some clients will mail a check to your office instead of handing it to you. Delays in the postal service may mean a week passes before you finally get the check, and then you still have to deposit it and wait for it to clear. Choosing small business credit card processing with a mobile processing option makes it easier to collect your money the day the job ends and have it in your bank account the next morning.