This is actually three questions related to accepting payments from clients on remodeling projects:
How do you typically like to receive payments from clients (e.g. check, credit card)?
What are the biggest issues you face (if any) when receiving payments?
What do you think about moving to an online payment system?Our company submits a quote and contract before starting a job. Many of our contracts require payment when the job is completed, at the final walk through. We do a lot of work for residential homeowners so a great way to collect payment is called “Square Up”. This allows homeowners to use their credit/debit cards for payment. You can use them with pretty much any smart phone, and the payment goes right into your account. We love ours and customers love it too as they are emailed a copy of the transaction right then and there. We, at Golden State Industrial Coatings like to give our clients the convienience of paying with their credit/debit cards right from home.
In your case i would prefer check or credit cards for your protection. everything is nicley documented for you and the contractor in case any dispute may occur.
Acceptance of cash, check, or credit card are all okay, however, cash can become cumbersome since providing change is necessary or bills must be rounded off. This can cause loss of monies for the company hurting it over an extended timeframe. Checks and credit cards can be transacted and/or posted without the need for direct contact with a bank which makes them more convenient. This may sound unimportant to a consumer, but remember that all of these costs will translate back to the customer eventually. The less overhead for the company means lesser charges for the customer.
An online payment system sounds great, but there is costs involved including manpower and time to organize, monitor and maintain the system. Again, these are costs that translate back to the customer. Personally, I like small companies with low overhead who provide high quality work but are able to keep costs reasonable. Adding expenses for convenience doesn’t always make sense. Also, online payment systems are okay if a company finds billing acceptable, but there is a tremendous overhead for doing so. A billing department, if only one person, is a dead weight on a company that translates into lower proffits and/or higher charges for the same repairs.
There are tradeoffs in the end, as has always proven true in business. I have found that in the end, providing small conveniences, such as accepting credit cards, helps me and my customer. A billing department however, would translate in to overhead that must be passed along to my customers, and I don’t want to wait to be paid thirty days after I performed the work. If you need to offset the payment, use a credit card. Banks don’t fix or replace heating and air equipment and my company doesn’t loan money.
Cash - Check - or Credit card upon completion
I accept check,cash,credit card,or cashiers check. In some instances involving big jobs and substantial amounts,and to assure the the customer has the ability to pay,we may run credit checks.
First I ask them where they got my info, and if it is from the internet or one of the many website referrals I got (like Buildzoom), I give them 10% of, right there!
After That I ask them if they are Seniors, Law-Enforcement, Fire-Fighters, Veterans, Disabled and I give them another 10% of!
I accept Cash, Checks, Credit/Debit Cards with Square Up, online payment through Quickbooks, with an secure website that is unique to the customer and also has an option for the customer to make partial, one-time or full payments to me with either their bank-account and or credit/debit also, in the comfort of their own home with instant verification for their records.
Most jobs I get 50% up front, to cover my expenses and materials and overhead, and final 50% upon completion, with bigger jobs above $10.000.00 (say deck or bath remodel) according my experience, it is better to go several partial payments to cover more expenses along the way, especially if and when you have to wait weeks for your money( e.g. 50%-25%-25%, or e.g. 40%-30%-30%),depending on the job.
Now on home building, additions and/or remodeling jobs above $50k-$1000K it is more typical to go in 5-6 draws with checks made out to the home-owner and/or the builder, through the bank with the proper paperwork and submitting of waivers of lien papers amongst others off-course.
Also on jobs this big, like the former post mentioned overhere, it might be of benefit to do a back-ground check to make sure you get your money, although if you go through financing, the bank already did this part for you.
For any additional change-orders that involve any extra labor, materials, it will also involve extra costs!
Make sure you get the money for change-orders ahead of time, I got duped many times in the past in the 90Ths, when they told me each time ;" We will settle up at the end of the job", and never did!
I have been blessed sofar that in 30 years time, only 1 person refused to pay me on a new home construction for $289.000.00, with a 5 draw system, needless to say this caused a lot of harm!
Hopefully this helped a bit,
Sincerely, Dutchy, Inc.
I typically recieve payments with cash or check.
To keep my prices affordable I’m unable to accept credit as a form of payment.
I think it would be something I may look into
I’m currently using PayPal to receive payment from my clients, but their fees are really cutting into my profits. Does anyone know of a cheaper way to get paid?
We accept all Major Credit Cards, Checks and Cash. With Technology today, you can use your smart phone as a mobile cash register. Most of the Credit Card Processing Services only charge when you use it so it reduces the cost of as minthly fee to offer the service. 2-3% charge is a small fee to incurr to know your money is your account within 2-3 days… And our Customers love the fact that they can pay right there and no need to pay for stamps…
Payment is always about what works for the customer. 1. Our company takes payments in multiple ways: Credit cards, check, PayPal. 2. Receiving payments has never been an issue for our company, we always put the customer first and what ever collection works best for them is the route we take. 3. Online payment is always an option currently we do take online payments through PayPal. Going strictly to an only online payment system would not be an option because every customer is different and having different alternatives is important.
I accept check,cash,credit card,or cashiers check. In some instances involving big jobs and substantial amounts,and to assure the the customer has the ability to pay,we may run credit checks.
Cash, Check and All major credit card
I Personally accept check first, but in some cases the client dosent have check on then and we use other method of payment like pay pay went i sent the invoice ,we use the credit card to, using scuare is good to have must contractor need one, on those cases not all clients are bad person but they take care they interest but you has a contractor has to do it to In some case ecenarios i have a check machine that is connect to your laptop or ipad and you can check any good or bad check thats my advise i never have any problems i hope this aswer help any contractor looking this blog..I accept all forms of payments includeing PayPal,cash, check, and Credit/Debit Cards for my customers convenience.I offer emailed reciepts, as well as hard copies for my customers convenience. I have delt with investors out of state I have accepted credit cards from them over the phone and Emailed the reciepts. This makes it extremely convenient and easy for them.
We accepte all major credit cards, Gif cards,Checks,Cash and money orders
Time
We have one in place
I Accept Cash (with Reciept) or Checks. The fees to set up a Credit Card system can cut into profits.
We spell out our payment schedule into the contract agreements with the clients approval. With the type of work that we do, the size of the projects, mostly we deal with bank finance, payments are quaranteed. We submit once a month for % of work done. No difference to the type of project we are doing, residential or commercial. Down payment and progress payments to completion, other wise will lien property. Small projects we make 3 to 4 payments, we accept checks, banks direct deposit into our account, Paypall, credit cards. Regardless you have to be on top of things. People have the habit to complain and say no money.