As a roofing contractor, getting paid for your hard work is crucial to the success and sustainability of your business.
But relying solely on checks as a payment method isn’t the most effective or secure approach. In today’s business landscape, alternative payment methods offer greater convenience, reliability, and protection for you and your customers.
In this blog post, we’ll explore five reasons why checks fall short as a reliable payment option for contractors. By diversifying your payment methods, you can enhance your business operations and ensure smoother financial transactions.
Let’s explore these reasons and discover better alternatives to ensure financial stability and peace of mind.
5 Reasons Why Checks Aren’t the Best Way to Get Paid
Most of Your Customers Don’t Use Checks
Want to hear a shocking statistic about checks? The number of written checks has gone down by 1.8 billion per year. That number is so staggering that Walden University predicts checks will go extinct by 2026.
In essence, many of your customers simply aren’t going to pay by check. They might not even own a checkbook to write you a check. Hinging your income on checks could lead to fewer payments.
Checks Are Difficult to Cancel
You might wonder why on earth you’d want to cancel a check. There are a few reasons why this would be ideal. If the customer made an error on the check, like the amount, you (or they) might want to stop the payment.
Additionally, it’s a good idea to cancel the check if your customer loses the check before it ever gets to you. The check might fall into the wrong hands and end up in someone else’s bank account.
Each bank can have a different process for voiding, which can take valuable time away from you getting paid.
Checks Can Bounce
Sometimes, a customer will write a check without having enough in their checking account to pay for your services. In those situations, the check will bounce. Checks can also bounce if:
- The customer’s signature isn’t clear (or not on the check at all)
- The check is missing information or has mistakes
- The check is post-dated but cashed early
Checks Hold Sensitive Information
Paper checks have all sorts of personal information, like your customer’s name, address, phone number, and account number. You don’t want to leave that sensitive information out in the open. Doing so can put your customer at risk.
Physical Checks Can Easily Get Lost
It isn’t hard to misplace a small slip of paper. Just ask sales rep John, who lost a check three times. Checks can get mixed in with other documents, and since a check is smaller than a typical 8.5”x11” sheet of paper, you won’t see it.
It’s also easy for a customer to misplace the check in their home or for someone to lose it in your work truck. You might not see that check again until you roll down the window—and catch a glimpse of it just in time to watch it disappear down the street.
Plus, checks notoriously get lost in the mail, not to mention that criminals are increasingly targeting mailboxes and mail carriers. Someone could steal your check right out from your customer’s mailbox before it even gets into the mail system.
Advice for Accepting Checks
If you’re going to accept checks, there are a few things you can do to keep the transaction as secure as possible. Here are three of our top suggestions.
Shred Deposited Checks
If you accept checks from your customers, you have an obligation to dispose of them properly. Rather than shredding each check that comes in, you can take other forms of payment.
Never Leave Checks in Your Vehicle
Passersby can see the check and glean personal information even when your car is locked. You should only have checks in your vehicle when you’re on your way to deposit them at the bank.
Only Endorse Checks When You’re Ready to Deposit Them
Endorsing your check should be the last step before you cash it in. Don’t sign the check as soon as you get it unless you’re immediately going to deposit it.
Create Sustainable Growth by Diversifying Your Payment Methods
Successful contracting companies know that there’s more to payments than just checks. Accepting multiple payment options is not only safer and more straightforward, but it also helps your business grow sustainably.
If you want to accept eChecks, credit cards, and debit cards for your contracting work, JobNimbus can help. Try our JobNimbus Payments feature today to start taking all sorts of payments quickly and easily. Schedule a demo with one of our experts or see what Payments is like for yourself!