During the lifecycle of an investment, you will receive contribution payments and you will make distribution payments. Groundbreaker makes it easy for both types. Funding instructions are stored within Groundbreaker and accessible by both you and the investor so that they are easily identified at the time payments are made.
Recall that all payments are between investment entities (the legal holder of the offering) and the investor account (the legal entity for the investor).
Automated Clearing House (ACH) payments are processed entirely within Groundbreaker through our banking partner, Dwolla. US Law requires that parties making electronic payments must first go through Customer Identification Program (CIP) verification. This will be your first step when setting up ACH as a funding method.
You will then set up the banking details and choose the method for account validation. You can choose to provide your bank account credentials for instant verification or receive micro-deposits. Micro-deposits are two small test deposits sent from your bank account to verify that we have the correct bank account information.
The investment entity is now set for both contribution and distribution payments via ACH. Because each investment entity is a separate legal entity and may have its own bank account, you will need to enable ACH for each investment entity that will be sending/receiving ACH payments.
It is important to note that the investor must also set up ACH for their investor accounts to enable ACH payment exchanges. The investor is required to undergo CIP verification in order to make ACH contribution payments.
When you choose ACH, keep in mind:
The maximum amount for ACH direct deposits is $250,000.00
ACH currently supports U.S. Bank Accounts only
U.S. law and KYC/AML compliance requires verification of all users who are funding through electronic transactions - that includes you and your investors - which can take up to three business days
ACH transactions generally take 3-5 business days to complete
Wire transfers are completed through your bank outside of Groundbreaker just as you have always processed them. Wiring instructions, for both you and your investors, are stored within Groundbreaker and are presented to the payor at the time payments are initiated. In order to communicate payment status and to keep a record of all transactions, you and your investors will manually update Groundbreaker when funds are sent and received.
You and your investor may prefer that the accounts payable systems (or persons) issue checks for payments. Groundbreaker stores the payee name and address and makes those available to the payor at the time payments are initiated. In order to communicate payment status and to keep a record of all transactions, you and your investors will manually update Groundbreaker when checks are sent and received.
At the appropriate time during the investment process, your investors will receive instructions for submitting their payments. The instructions they receive are the ones that you updated and stored as the contribution funding instructions in the Investment Entity settings.
==> From the Home Dashboard, select Investment Entities
==> Click on the Investment Entity
==> Click on Subscription
==> Click on View Settings and scroll down
During the investment process, the methods you have configured and the instructions for each will be presented to your investor and they will choose the method for sending their payment.
At the time they commit, each investor is required to identify a preferred method for receiving distribution payments. Their preference, along with the instructions - bank details for ACH, instructions for wire transfers, or addresses for sending checks - are stored with each investor and presented to you at the time you make distributions.
You can easily process distributions when the information you need to complete each payment is maintained for you.
If you have more questions or feedback, please use the live chat in-app (located in the bottom right corner) or contact firstname.lastname@example.org.