One of the top problems contractors complain about is money management, from late payments, project budgeting, and unexpected expenses, cash flow and oversight is often more than small businesses can handle effectively.
Now, contractors are embracing payment apps to make the financial side of the business easier.
Companies like Siteline offer a software tool designed to automate a contractors’ billing process.
Financial apps can help keep track of more than invoices and expenses, but also manage insurance documents, payment schedules, and client information.
Many companies continue to operate using spreadsheets, word documents, and files stored in cabinets.
Called a financial tech or "fintech" solution, companies like Siteline have popped up in recent years to contractor financials. Some companies can also track and measure material allocation, deliveries, financial projections, risk management, project timelines, and profitablity.
According to the annual Construction Payments Report, slow payments to contractors and subcontractors cost the industry $136 billion in 2021. That's in increase of 36% increase from the year before. Contractors surveyed say automatic payment processing and instant or direct payments is what's needed to make life easier.
“Unforeseen uncertainty in the supply chain requires contractors, developers and lenders to take a collaborative approach toward addressing price and schedule risk in 2021,” Rabbet CEO Will Mitchell said. “The pandemic further illuminated existing process challenges, and the need for transparency, automation and centralization in construction payment processes has never been greater.”
Fintech solutions prove to be easy to use, often with little to know training on the app. Payment and financing platform BlueTape, for example, lets contractors make and receive payments on their mobile devices via text. They don’t even have to download an app.
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- Report: COVID-19 has slowed payments for GCs and subsBy Jennifer Goodman • June 17, 2021
