The Groundbreaker Platform makes it easy to manage your distributions. When it is time to distribute payments to all investors who have contributed to one of your Offerings, you will create a new distribution. Because all payments occur between legal entities, the distribution is managed via the investment entity and creates payments to investor accounts.

To create a distribution:

=> Select Menu from the Home Dashboard.

=> Then select Investment Entities

=> Click on the Investment Entity making the distribution

The specifics for the Investment Entity you selected are displayed and from here you can click the +New button and then Distribution to add the transaction.

Calculate the Distribution Amounts

The next screen asks for distribution instructions. At this time, Groundbreaker supports pro-rata allocation calculations based on investor ownership percentages. Click on Allocate pro-rata.

On the next page, enter the details that will be used to calculate the distribution amounts.

Provide the required details:

  • Distribution Name - identifies the payment to the investors (e.g. Q1 2020 Distribution)

  • Date of the distribution

  • Total distribution amount

  • Sponsor amount

  • Cash flow type - the drop-down menu presents several options and you can select as many as apply

The Remaining distribution amount is calculated as the remainder after the sponsor amount is deducted from the total distribution amount. This is what will be distributed to your investors with each investor receiving a payment pro-rated by the size of their contribution.

Finalize the Distribution Amounts

When you click Continue, the page showing all distributions for the Investment Entity is displayed. You can also navigate to this page by going to the Transactions page for the Investment Entity and selecting Distributions from the options on the left side of the page.

The Distribution you just created will be in Draft status. Clicking on the Draft transaction will bring up the detailed information for the distribution to be processed for payment.

The payment amount for each investor is prorated based on their contribution amounts. You should validate that the distribution amounts calculated for each investor meet your expectations. If you want to edit any amount, select the pencil icon for that distribution payment. You may also delete this transaction by selecting Delete and Start Over.

When the amounts are correct, click Publish distribution. This will change the status of the distribution to Finalized which indicates that the amounts are final and ready to be processed for payment. This action does not initiate payments! Refer to How do I create payments for a distribution? for how to make the payments.

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Support Information

If you have more questions or feedback, please use the live chat in-app (located in the bottom right corner) or contact support@groundbreaker.co.

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