BlueTape, which provides payments and financing offerings to the construction sector, has rolled out its payment offering. The company — known as LinqPal in the past — now lets construction professionals use their mobile devices to make and obtain payments on their mobile devices, according to a Tuesday (July 13) announcement.
BlueTape CEO and Co-Founder Yaser Masoudnia said in the announcement that he had personal experience contending with payment challenges as a builder. Masoudnia said that material vendors waste much time handling invoices and accounts receivable (AR) in addition to chasing invoices that have not been paid yet.
Moreover, Masoudnia said in the announcement that contractors and builders dedicate lots of time to managing documentation, cutting checks and reading credit card numbers over the phone throughout the day at different times.
“My team and I have worked tirelessly to create a product that will change the way payments and financing are conducted within the industry,” he said in the announcement. “It is easy to use, and it makes checks and unpaid invoices a concern of the past. We are giving material suppliers a payment tool to simplify their payments and enabling them to prioritize their business’ success.”
To that end, BlueTape lets building material vendors, distributors, dealers, retailers and manufacturers digitize AR, transmit invoices and payment reminders through text, and let clients make payments for their construction supplies purchases by the way of automated clearing house (ACH) or credit cards through their mobile devices, the announcement stated.
For contractors who have to buy materials from suppliers, payment practices typically involve a monthly deadline upon which every outstanding invoice is due, regardless of if the invoices were issued 30 days or three days prior to that due date, PYMNTS previously reported.
According to Masoudnia, this legacy B2B payments structure is only one example of the different kinds of historical payment processes on which the construction sector depends.
As he previously told PYMNTS, antiquated and non-automated workflows fail to contend with the largest challenges for materials suppliers and contractor purchasers, leaving much room for friction and cash flow logjams.