Convenience when paying a contractor? Adopting technology?

Question

Anyone ever used modern apps like paypal, venmo, etc. to pay contractors?

Any contractors accept these modern payment formats & have advice on convincing someone to take the time to set it up to accept these payments?

My thinking is that I want to add value to my contractors by being able to pay them virtually instantaneously, as we all know speed of payment and fast cash flow is important to their business....but lately, I have struggled to convince a couple of guys to adopt these payment methods.

Any thoughts are appreciated.  TIA

Wayne Brooks · Answer

And how/when would you get your concurrent lien release executed?

Jed Hefner · Answer

@Bill Buzzell @Matthew Paul @David Stumpf - thanks for the feedback guys.  I was probably still looking at this from the perspective of what is convenient for me, and wasn't considering the cost or impact to the contractor's business.  Thanks for the perspective and tips on how to approach contractors on this topic.  Absolutely agree with David that the service provider gets to decide how he gets paid, and if it ultimately doesnt make sense for his business, then I need to be happy writing a check.

David Stumpf · Answer

@Jed Hefner IMO the person who is providing the service should says what payments are accepted.  I agree that PayPal or others is much more convenient however I am not going to have renters tell me that they want to pay me in amazon gift cards.  I would suggest it and if they say no pay them how they prefer.

Wayne Brooks · Answer

Wire transfers are immediate....same as depositing cash.

Bill Buzzell · Answer

@Wayne Brooks  Good point. Had not considered the legal aspects.

Perhaps a pre arranged old school bank wire payment? That should be as solid a transaction as a check, likely more so. It is also a flat fee of $30 for any amount. The timing is a factor here. A wire transfer doesn't clear as fast as a check, I don't believe.

Me, personally try never to have to chase money on Friday. I save half a day if I am not having to chase a piece of paper and then make a bank run every friday it seems. There is definite value earned right there as far as I'm concerned.

I think it would make sense to split this cost, the flat $30, as a mutual saving in time when it makes sense. If you are visiting the job regularly anyway, would make no sense in wasting $15 apiece since I can just do an online deposit from my phone of your check.

This subject really applies to out of state investors and creating an efficient way to pay people from afar. If I can deposit a check from my phone it is then just a question of "who has to deliver the check" me or you.

So it boils down to price. At $30 a pop might as well call an Uber.

Matthew Paul · Answer

As a contractor I will take a check or cash .  If the customer bounces a check , I can take them to court for passing bad paper .

Bill Buzzell · Answer

@Jed Hefner As a contractor, I love the idea , it is the cost that is the only deterrant . A $1000 payment will cost $30 or about 2.9%.

Convenience when paying a contractor? Adopting technology?

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