The 10-Day Check Problem: How Mail Delays Are Costing Contractors Thousands

Every day a check sits in the mail is a day your project sits on hold.

For most construction businesses, paper checks still dominate the payment landscape. A homeowner writes a check for a $50,000 kitchen remodel. A general contractor cuts checks to three subcontractors. A property manager mails payment for completed repairs.

It feels routine. Normal. "That's just how construction works."

But here's what most contractors don't realize: those seemingly harmless paper checks are quietly draining thousands of dollars from your business every single month.

The Hidden Timeline of Check Payments

Let's walk through what actually happens when a client says "I'll mail you a check":

• Day 0: Client writes the check
• Days 1-3: Check sits in outgoing mail
• Days 4-6: USPS delivery (if everything goes smoothly)
• Day 7: Check arrives at your office
• Day 8: Office manager makes bank run to deposit
• Days 9-11: Bank hold period (especially for large amounts)
• Day 12: Funds finally available

That's 12 days from payment to usable cash. And that's assuming nothing goes wrong.

Now multiply that across every payment you receive. Every progress payment. Every final invoice. Every deposit.

The Real Cost: A $100,000 Project Breakdown

Let's get specific with numbers. Take a typical $100,000 residential remodeling project with a standard payment structure:

• Deposit (30%): $30,000
• Progress Payment 1 (30%): $30,000
• Progress Payment 2 (30%): $30,000
• Final Payment (10%): $10,000

Traditional Check Payments vs. Instant Digital Payments

With checks: Each milestone payment takes 12 days to clear. You delay material orders, wait to pay subs, and extend project timelines. Total delay across project: 48 days of payment float.

With Truss digital payments: Milestone complete → send payment link → client pays → funds available same day. Total delay: 0 days.

Quantifying the Hidden Costs

The 10-day check problem isn't just about inconvenience. It's about real dollars leaving your business.

1. Opportunity Cost: $1,200+ per $100K project

When your cash is tied up waiting for checks to clear, you're losing opportunities:

• Supplier early-payment discounts: Many material suppliers offer 2% discounts for payment within 10 days. On $40,000 in materials, that's $800 you're leaving on the table.
• Bulk purchasing power: Can't take advantage of volume discounts when cash flow is unpredictable
• Next project delays: Can't commit to new work because you're unsure when current payments will clear

Conservative estimate: $1,200 in lost opportunities per $100K project

2. Administrative Burden: $2,340 annually

Your office manager spends time on:

• Receiving and logging checks: 10 minutes per check
• Bank runs (2-3 times per week): 45 minutes per trip
• Deposit preparation: 15 minutes per deposit
• Reconciliation and follow-up: 20 minutes per check

Average: 50 minutes per check received

If you receive 3 checks per week:

• 156 checks per year
• 130 hours of administrative time
• At $18/hour: $2,340 in labor costs

That's not counting the opportunity cost of what your office manager could be doing instead: customer service, project coordination, business development.

3. Bank Holds on Large Deposits: Project-Killing Delays

Banks routinely place holds on large checks—and in construction, most checks are large.

Typical bank hold policies:

• Checks over $5,000: 7-10 business day hold
• Checks from out-of-state: Additional 5 days
• New banking relationships: Up to 14 days

Richard Miller, owner of Richard Miller Custom Homes, experienced this administrative burden firsthand. His company handles property maintenance and restoration work, constantly juggling payments from multiple clients while managing crew schedules and vendor relationships.

The check collection and deposit process was consuming valuable time that could have been spent growing the business. As Richard explains:

"Truss eliminates the need to waste my or staff's time picking up and depositing checks."

After switching to Truss Payments, Richard Miller Custom Homes transformed their payment workflow. Now clients pay digitally, funds are available immediately, and the team can focus on what matters: serving customers and completing projects.

Cost of bank holds:

• Delayed material orders: 1-2 week project extensions
• Strained vendor relationships: Late payments damage your reputation
• Interest charges: If you're forced to use credit to bridge the gap
• Lost projects: When you can't commit to start dates due to cash uncertainty

4. Mail Failures: The 5% Problem

According to USPS data, approximately 3-5% of mail is delayed, lost, or damaged. For construction businesses receiving dozens of checks per year, that means:

• 2-3 lost or significantly delayed checks annually
• Time spent tracking down clients: 2-3 hours per incident
• Requesting replacement checks: Another 10-12 day delay
• Potential disputes: "I already paid you" vs. "We never received it"

Cost of lost checks:

• Administrative time tracking down payment: $100-200 per incident
• Project delays while resolving: Immeasurable relationship damage
• Potential legal fees if disputes escalate: $500-2,000+

5. Working Capital Strain: The Compounding Effect

You complete $200,000 in work per month. With 10-12 day check delays, you're constantly operating with $60,000-80,000 tied up in payment float.

If you're carrying an average of $70,000 in payment float and using a business line of credit at 8% interest to cover operations:

$70,000 × 8% = $5,600 in annual interest charges

That's $5,600 you're paying simply because checks take too long to clear.

The Total Annual Cost of Check Payments

For a mid-sized contractor doing $1.2M in annual revenue:

• Opportunity costs (lost discounts, bulk pricing): $14,400
• Administrative labor: $2,340
• Bank hold-related delays: $3,000 – $8,000
• Lost/delayed mail incidents: $400 – $600
• Working capital interest charges: $5,600

Total Annual Cost: $25,740 – $30,940

That's roughly 2-3% of your revenue disappearing into the check payment system.

The Modern Alternative: How Digital Payments Eliminate the Problem

Modern payment platforms like Truss are purpose-built for contractors, addressing the unique challenges of construction cash flow.

How It Works:

1. Get Paid Instantly

• Send a payment link via text or email after completing a milestone
• Clients pay via ACH, credit card, or tap-to-phone right from the jobsite
• Funds settle to your account immediately—no waiting, no bank holds

2. Eliminate Administrative Work

• Payments automatically sync with QuickBooks
• No more bank runs, manual reconciliation, or chasing down checks
• Your office manager gets hours back every week

3. Pay Subs & Vendors Seamlessly

• Manage all outgoing payments from one platform
• Schedule payments, track spending, maintain vendor relationships
• Keep projects moving with predictable cash flow

4. Accept Payments Anywhere

• Collect deposits during initial consultations using tap-to-phone
• Get progress payments on-site when milestones are complete
• Issue cards to crew members for jobsite purchases

The Competitive Advantage of Fast Payments

Beyond direct cost savings, there's a strategic advantage to modern payment infrastructure:

Win More Projects: When you offer convenient payment options—pay by link, tap-to-phone on-site, automated ACH—you become easier to work with.

Complete More Work: Faster cash conversion means you can take on more projects simultaneously without waiting for checks to clear.

Build Stronger Vendor Relationships: Predictable cash flow means you can pay suppliers and subs consistently and on time, building trust and often securing better pricing.

Reduce Financial Stress: Know exactly when payments will hit your account, eliminating the constant anxiety of cash flow uncertainty.

Making the Switch: What to Expect

Ready to eliminate the 10-day check problem? Here's what the transition looks like:

Week 1: Setup

• Connect your business bank account to Truss
• Integrate with QuickBooks or your accounting software
• Set up your payment preferences and invoice templates

Week 2-3: Transition Period

• Start using digital payments for new projects
• Communicate the change to existing clients (most are relieved to have easier payment options)
• Continue processing checks from clients who prefer them during the transition

Week 4+: Full Implementation

• All new clients use digital payments by default
• You start seeing the cash flow and time-saving benefits

The key insight: You don't have to force every client to switch immediately. Start with new projects, and let existing clients transition naturally. Most contractors find that clients actually prefer digital payments once they try them.

Common Objections (And Why They Don't Hold Up)

"My clients prefer checks."

What clients actually prefer is convenience. When you offer a payment link they can click from their phone, or tap-to-phone payment on-site, most choose that over writing and mailing a check.

"I don't want to pay processing fees."

With Truss, you can pass processing fees to clients automatically. The client sees the fee at checkout and chooses whether to pay it or use a different method.

"My bookkeeper likes checks because they're easy to track."

Digital payments are actually easier to track because they sync automatically with your accounting software. No more manual entry, no more reconciliation errors, no more lost receipts.

"I'm worried about security."

Digital payments through Truss are significantly more secure than checks. Checks contain your account and routing numbers—all the information someone needs to commit fraud. Digital payments use encryption and tokenization, and you never handle sensitive card information.

The Bottom Line

The 10-day check problem isn't just an inconvenience—it's a $25,000-30,000 annual tax on your business. It delays projects, strains cash flow, wastes administrative time, and puts you at a competitive disadvantage.

Here's what modern payment infrastructure looks like in practice:

• Client completes a project walkthrough and approves work
• You send a payment link via text: "Thanks for approving! Here's the link to submit your progress payment."
• Client clicks, pays via their preferred method (ACH, card, or tap-to-phone)
• Funds hit your account immediately
• Payment automatically syncs with QuickBooks
• You order materials for the next phase the same day

No mail delays. No bank holds. No lost checks. No administrative burden.

Just fast, predictable cash flow that keeps your projects moving.

Ready to Eliminate Payment Delays?

See why contractors choose Truss to get paid faster, reduce administrative work, and improve cash flow predictability.

Built exclusively for construction businesses. Integrates seamlessly with QuickBooks. Get started in minutes.

• Get Paid Faster - Accept payments via ACH, card, or tap-to-phone
• Modern Banking for Contractors - Up to $3M FDIC coverage, instant transfers
• Pay Subs & Vendors - Manage all outgoing payments in one place
• Business Cards for Your Crew - Control spending with virtual and physical cards

Get started with Truss →

Disclaimer: Truss provides tools to help contractors manage and streamline payments. However, Truss is not responsible for financial, legal, or employment decisions made by its users. Always consult with an accountant or legal professional for personalized advice.