Said It Here

Why won't contractors take credit cards for large deposits?

Contractors often require checks for large upfront deposits before ordering materials, forcing property owners to drain thousands from their checking accounts all at once. This inflexibility strips away cash buffer right when other major bills like property taxes and insurance hit, making it impossible to smooth out major expenses using available credit lines.

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

  1. 1
    Asking the contractor to accept a credit card with a processing fee added
  2. 2
    Using third-party bill payment services like Plastiq to pay contractors with a credit card via check
  3. 3
    Requesting a materials list from the contractor to order the supplies directly using a credit card
  4. 4
    Offering to cover the credit card processing fee
  5. 5
    Requesting Net 30 or other payment terms from the supplier
  6. 6
    Obtaining a line of credit from a bank
  7. 7
    Asking to pay prior to shipping or structuring a deposit with the balance COD

In their words

Unedited, most upvoted first, each linked to the thread it came from.

We're placing our biggest inventory order so far and I completely forgot this supplier is ACH only. Never bothered me when I was sending them $1,500. This invoice is a little over $13k and I'm looking at it differently.source ↗

We've got sales coming in normally and the money is there but I would rather keep that $13k in the account while the inventory is being made and put the purchase on the business card instead.source ↗

WingedConcur · r/smallbusiness · 105 upvotes

Then he sends me the deposit amount and I remember why I kept putting it off. He needs a check before he orders everything, property taxes just came out and insurance is due later this monthsource ↗

I can cover it but I really don't want another $6k disappearing from checking this week. I've got a card sitting there with plenty of room on it which would make the timing a lot easier, except obviously the contractor doesn't take cardssource ↗

Zealousideal-Air4954 · r/PropertyManagement · 31 upvotes

This is why I hate checks for big contractor jobs. Not because I can't cover it, just because there's zero flexibility once that money leaves.source ↗

No-Bandicoot1486 · r/PropertyManagement · 3 upvotes

Where this came up

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