3 Ways Payment Innovation Reduces Costs and Cash Use in Construction

Door Industry Journal

On average, builders merchants wait an alarming 94 days to receive payments, according to the industry’s days sales outstanding (DSO) metric. This prolonged delay—over three months—can severely disrupt operations and increase the risk of fraud and insolvency. In fact, late payments contributed to 28% of UK construction sector insolvencies in 2023.

By partnering with a paytech company, such as Prommt, builders merchants can secure payments before delivery, ensure compliance with data regulations, reduce chargebacks, and lower the costs and time associated with payment collection. They can offer flexible payment options and present card or bank (or both) payment methods based on merchant-defined purchase value thresholds. With advanced features, they can automate credit control, effectively manage arrears and personal payment plans, and optimise staff time in payment collection.

In his latest opinion piece for the Door Industry Journal, Donal McGuinness, CEO at Prommt, explores how payment innovation can reduce fraud, costs, and cash dependency in the hardware industry.