How do you pay subcontractors faster?
Pay subs faster by automating your invoice processing and using direct bank transfers instead of checks. Most contractors waste 3-5 days on manual payment workflows. We'll show you the systems that cut that down to hours.
Process invoices the day they arrive
The biggest delay isn't approval — it's data entry. Your sub emails an invoice. It sits in your inbox. You manually enter it into quickbooks. Three days pass. Instead, set up a single system where subs submit invoices in one place. Digital submission means no scanning, no typing, no lost emails. When an invoice hits your system, you see it immediately. Approval takes minutes, not days. Even basic tools like Wave or QuickBooks Online let you create an invoice portal. Your subs can upload a photo or PDF in seconds. The invoice lands in your system ready to process, not your email inbox.
Switch from checks to ACH transfers
A check takes 3-5 days in the mail, plus your bank's clearing time. ACH transfers hit a sub's account in 1-2 business days. Many banks offer free ACH batch processing. Set a weekly payment day — Wednesday morning, for example — and process all invoices due that week at once. This eliminates the excuse of 'I have to write checks one at a time.' Bundle payments, hit send once a week, and you're done. Your subs know the exact day to expect money. This builds trust faster than promising 'net 30' and delivering net 45.
Require invoices aligned with job completion
A sub finishes work on Monday but invoices you Friday. You don't see it until the next week. Kill this delay by requiring invoices within 24-48 hours of work completion. Tie final invoice submission to a photo checklist or sign-off on the job card. Some jobs get final payment only after you inspect and both parties confirm the work is done. No invoice, no job closure. No job closure, no payment. This isn't harsh — it's clear. Subs know exactly when to invoice and exactly when they'll get paid. No ambiguity. No forgotten jobs.
Offer a small discount for same-week invoicing
If a sub invoices by Wednesday, they get paid the following Monday instead of Thursday. A 2% discount for fast invoicing costs you less than the float time and accounting delays you're already eating. Some subs will invoice the day work ends just to grab the discount. This pulls invoices in faster and compresses your payment cycle naturally. You move money faster, subs get paid faster, and your cash flow stays tighter. Everyone wins. This works especially well with regular subs who know they'll hit the deadline consistently.
Bottom line
Stop relying on paper and manual entry. Create one digital submission point, use ACH transfers instead of checks, and require invoices within 48 hours of job completion. Your subs will get paid faster, and you'll stop chasing invoices.