Ways to plan your remodeling Payment
When you’re planning your next construction project, one of the most important considerations is how you are planning to pay for it. Most construction companies often different payment options to suit customer’s needs, and New Beginnings Construction is no different.
We offer multiple payment options, and payment schedules, allowing you to choose the method that works best for you. However, it’s important to know that each option has advantages and drawbacks and to understand how they could affect you during your project.
Cash Payments
For smaller construction projects, you may want to keep things simple, and cash can be a quick and easy way to handle payments. The biggest benefit of paying in cash is that it allows for an immediate exchange — there is no waiting for a check or ACH to clear or additional steps involved. It’s important to note seldom are there any fees associated with cash payments, so you do not have to cover processing fees or pay hidden costs.
It’s easy to feel more in control of your budget, knowing the exact amount you’re paying without any surprises. However, for larger payments paying in cash can also feel risky, especially if you’re handling a large sum of cash. If something happens to the cash or there’s no clear record of the payment.
For larger projects, cash payments can also be impractical due to the sheer amount involved. This method of payment is seldom used these days as more and more customers are opting to embrace some other methods of payment.
Check Payments
Another payment method that is becoming less frequent these days would be writing a check. For some older generations, it is still a familiar and straightforward method, especially for significant transactions.
There is comfort in knowing that you can keep a physical or digital record of the payment for your records. Similar to cash, when paying with a check, there’s no need to worry about extra fees or processing charges. However, it’s important to keep in mind that check payments aren’t instantaneous.
Your funds won’t leave your account right away, which could delay progress on your project if there is a long wait period for the check to clear your bank account. One last thing to mention about checks, if there’s an issue with your bank balance, causing a check to bounce, that can lead to additional fees assessed by the contractor as the banks will charge the person making the deposit a fee.
Credit Card Payments
Like them, love them, or hate them, credit cards have become one of the most popular payment methods today. If convenience and flexibility are high on your priority list, paying with a credit card may be a good option for your renovation or construction project.
Credit card payments are considered instant payments, meaning there’s no waiting on checks to clear or transfers to process. Most credit cards also include built-in fraud protection, offering an added layer of security during your project. For many homeowners, another major advantage is flexibility—credit cards allow you to spread payments over time, easing the immediate financial impact of a larger renovation.
That said, it’s important to understand the full picture. Like most construction companies, New Beginnings Construction may pass along credit card processing fees, which typically range from 2–3% of the total payment. On larger projects, these fees can add up. Companies that advertise “no credit card fees” often build those costs into their pricing upfront, which can increase project costs even for customers who don’t use a credit card. If keeping expenses as low and transparent as possible is your goal, alternative payment methods may be worth considering.
For customers who choose the convenience of credit card payments, we’ve made the process simple and secure. You can submit your payment anytime through our online payment portal:
👉 Pay Online Here: Payment Portal
This portal allows you to complete your payment quickly and easily from the comfort of your home—just follow the prompts to enter your payment details, and you’re all set.
If you have any questions about payment options or need assistance, please don’t hesitate to reach out. We’re here to help, and we appreciate the opportunity to work with you. Thank you for choosing New Beginnings Construction.
ACH Payments (Automated Clearing House)
If you’re looking for a secure, low-cost payment method, ACH transfers might just be the way to go. This option allows for direct electronic payments between your and the contractor’s bank accounts, often with much lower fees than credit cards. If you’re handling recurring payments or a phased construction project, ACH can streamline the process without worrying about sending multiple checks visiting a bank, or paying the higher processing fees associated with most credit cards.
At New Beginnings Construction we prefer this method of payment as it is secure, fairly quick, and also the fee is low enough that we absorb this fee as a cost of doing business. That being said, there are a few drawbacks if looking at them honestly, ACH payments aren’t instant. While they are secure, you may experience a delay of a few days before the money leaves your account and reaches the construction company. If need the payment to be processed quickly, the wait time might be a little frustrating.
Venmo and Digital Wallets
Some payment methods that are gaining ground that you should consider is using Venmo or other digital wallets, which can be a very convenient way to handle smaller or medium-sized projects. These are options that simply were not available even 10 years ago, but If you’re tech-savvy and already use these platforms, you might appreciate how easy it is to make a payment directly from your phone or device.
These funds are typically transferred instantly, which means no delays, and you don’t have to worry about writing checks or carrying cash. However, as you may be aware Venmo and other platforms often come with limits on how much you can transfer in a single transaction. This can make them less suitable if you’re looking to use them for large-scale construction projects where payments can be sizable. Additionally, some companies may charge a small fee for using these digital payment methods, which could add to your costs.
Third-Party Financing Options
Paying for a large construction project outright just isn’t feasible. In these cases, third-party financing options can help get the work done without draining your savings or maxing out your credit cards. We also see where homeowners will use a third-party option to help supplement the additional costs that they may or may not have in savings.
Home Equity Line of Credit (HELOC)
With the dramatic rise in home values over the last 10 years, A HELOC loan may be the way to go to fund your current and future projects you have on the short list. A HELOC loan allows you to borrow against the equity in your home, giving you a flexible line of credit that you can draw from as needed during your construction project. One of the major benefits of this type of financing is that HELOCs often come with lower interest rates compared to personal loans or credit cards, making them an attractive option if you’re financing a significant project.
You can also borrow only what you need, and only when you need it, which helps keep your interest payments lower. However, it’s important to remember that a HELOC uses your home as collateral. This means if you fail to make payments, you could risk losing your home. Additionally, if property values in your area decline, the amount of equity you have available to borrow may decrease.
Construction Finance Lenders
Construction loans are short-term loans which can be “same as cash” loans, or lower monthly interest rate loans specifically designed to fund the building or renovation of a property. The construction industry has a lot of lending companies set up to make this process as simple as possible, with approvals as quickly as just a couple mins. These loans are typically disbursed in draws based on the progress of the construction work. One of the advantages of a construction loan is that it allows you to finance your project without tapping into your savings or home equity.
On the downside, most construction finance lenders charge the contractor to use their platform which can add anywhere from 5% – 10% more to cost of the job in financing charges. While they can be easy to obtain, and find a project they can add significant costs to a “financed price” rather than the ”cash price” for the same job, as you may have to pay the percentage the contract is charged and the interest that the lender is charging you on the money being spent.
Payment Schedules and What to Expect
In addition to deciding how to pay, you’ll also need to consider when and how often you will have to pay. Depending on the size and complexity of your project, the payment schedule can vary pretty significantly.
Smaller Size Size Projects
For shingle roof Replacement projects or window replacement jobs, or even smaller projects that can be completed quickly, such as a home repair or minor renovation, you’ll likely encounter a simple payment structure. Typically, you’ll be asked to provide a deposit before work begins, usually ranging from 40% to 50% of the total project cost.
Since there’s a large portion of the overall job costs are in the materials to order and purchase it makes more sense that a large portion of the job would be required upfront for New Beginnings Construction to place the order and purchase the materials for the customer. This larger deposit helps cover not only materials or special ordered items, but also can secure your place in the contractor’s schedule. Once the work is complete, you’ll make the final payment. This straightforward approach is ideal for short-term projects where the financial commitment isn’t overwhelming and you can quickly see the results.
Medium Size Projects
For medium-sized or more complex projects, the payment structure might be divided into several stages. You’ll typically pay a deposit of around 20-30% of the project cost upfront, followed by a series of progress payments as the work reaches certain milestones. For example, you might make a payment when the foundation is poured, another when the framing is complete, and additional payments as major components of the job are finished. This method allows you to keep track of the project’s progress and ensures that your payments align with the work being completed. It also helps you manage your budget by spreading out payments throughout the project, rather than needing to pay a large lump sum upfront or at completion. It’s customary to see the final payment on these types of projects ending up being 5-10% of the overall project cost, paid once the project is completely finished.
Large Projects
For very large or custom projects, such as building a new home or completing a large-scale renovation, you may encounter an even more detailed payment schedule. These projects can involve 5-10 draws throughout the construction process, with payments tied to inspections or other significant milestones. Typically, a small portion of the total cost—around 5-10%—is held back until the project is fully completed and you’re satisfied with the work. This ensures that the contractor addresses any final details or issues before the full payment is made. For you, this can offer peace of mind, knowing that you still have some financial leverage until the project meets your expectations.
At New Beginnings Construction, we like our payment structures to mirror the expenses of the job. So we don’t bill the client too far ahead of the costs, nor are we comfortable shouldering much of the costs for the customer. There is a fine balance between the two that we think is fair to both the contractor and the client.
Making the Right Payment Choices
When planning your construction project, choosing the right payment method and schedule is key to managing your finances and ensuring a smooth experience for all. Whether you prefer the ease of digital wallets, the structure of check payments, or the flexibility of a HELOC, understanding your options will help you stay in control of your budget while ensuring that your project progresses smoothly. By selecting the right payment method and schedule, you can make the construction process easier and more manageable, all while ensuring that your financial plan works for you.
Questions?
