Send Distributions via ACH and Check

TABLE OF CONTENTS

• Key Benefits
• Pricing
• Setup
• How to Send Payments
• Payments Status
• How Payments Look on the Bank Statement 
• Cancel a Payment 
• Recover the Failed payments
• ACH Reversal
• Void a Check
• Transfer Limits
• Miscellaneous

You can send distributions via ACH and Check-in one seamless process, directly from your SyndicationPro account.

Key Benefits

• Save time. Payments are integrated directly into the distributions module of each deal, giving you a streamlined way to add distributions and make payments in one simple workflow.
• Reduce errors. Investors can update distribution preferences in real-time and tailored workflows make getting these details from investors a simple one-click process.
• Provide better customer service. Investors will receive payments quicker than ever before. 
• Increase transparency. Your team and your investors see real-time updates related to the status of each payment e.g. Initiated, Pending, Settled for ACH payments, and the Est. Delivery Date along with Date Delivered for Checks. 
• Specialized workflows. From one page you can view all of your investor’s distribution preferences and with one click send reminders to investors to complete their profiles. Easily send one-off distributions and manage incomplete payments.

Pricing

• $50/mo (recurring fee) to activate, includes unlimited offerings
• $0.49 per ACH and $5 per check (printed & mailed with tracking)
• $3 per ACH reversal
• $5 one-time verification fee per new payment entity

Setup

For a detail step-by-step walkthrough on how to add payment entities and bank accounts, see the article: Payment Entities ― Add Entities & Bank Accounts.

How to Send Payments

With your setup complete, you can send ACH and Check payments directly from the "Distributions" tab of each offering. 

You can import distribution amounts or use our calculator and then click "Continue to Payments"

At this step, you review the distribution preferences for each investor and, if required, send an email notification to your investor(s) to add their distribution preferences. 

If an investor has incomplete distribution preferences, you can still submit all payments and pay the investor who does not have these details set at a later time directly from the "Transactions" tab under the Payments page. 

You will also see the option to pay All Investors or choose a Single Investor under the Distributions tab of each offering.

ACH payments less than or equal to $10,000.00 will take 2 to 3 business days to settle in the investor's account.

ACH payments greater than $10,000.00 will take 3 to 5 business days to settle in the investor's account.

Checks are typically delivered within 5 business days.

Payments Status

Both ACH and Checks will display the status of the payment under the Transactions tab of the Payments page. This status will also be displayed to investors so complete transparency is maintained. 

ACH payments display as Pending until Settled. The payment date will be updated to the date that the payment is Settled in the investor's bank account. 

Checks will include an estimated delivery date and then display the delivered date.

How Payments Look on the Bank Statement 

The business name or DBA you use to create your payment account will be listed on the ACH bank line for your investors to reference. We can not customize how this comes across. 

Checks will also have your business name or DBA listed and the memo of the check will include the memo you included when added the distribution in addition to the offering name.

ACH transactions on your funding bank account will come across as "SyndicationPro" and are in batches. For example, if you add a $200,000 distribution to an offering that has 25 investors, then you will see $200,000 drafted from your bank account.

Cancel a Payment 

Upon submitting a transaction you will have 10 seconds to cancel, after which point the payments will be submitted and you will not have the ability to cancel them. For this reason, it is critical to ensure that the transactions you submit are accurate and without errors.

Recover Failed Payments 

ACH payments may fail for various reasons, such as when the investor provides incorrect bank information, restrictions imposed by the investor's bank, or insufficient funds in the sender's bank account.

If the money is withdrawn from the bank and the payment fails, the amount will be debited back to the balance. The Sponsor can manually transfer the funds out of the balance to the verified bank by following the steps provided below.

From your SyndicationPro dashboard, follow the below steps

1. Click Payments in the left-hand navigation menu
2. Click Settings, and Under Balance, you will find the total Failed payments displayed.
3. Click on the Payment transfer icon under Actions to transfer the balance back to your bank.

ACH Reversal

This feature will be coming soon but as of right now you cannot reverse an ACH payment. If you made a mistake and paid an investor too much then that investor will need to issue a payment back to you.

Void a Check

To void a check you can contact your banking institution and provide them with the check number so they can issue a stop payment.

Transfer Limits

ACH has a single transfer limit of $100,000. Transactions larger than this will be automatically broken up into multiple transfers. For example, sending $150,000 to an investor would result in one $100,000 and one $50,000 transfer on the same day.

The maximum single check size is $1,000,000.

There are no daily, weekly, or monthly aggregate transfer limits.

Miscellaneous

In order to support ACH payments to IRA Custodians, we will give you the option to add one or more emails to the investor's bank account to receive distribution notifications. This way you can add the custodian's email(s) and they will receive the distribution notification email so they can reconcile the payment correctly. 

Currently, we allow you to set up one payment account and add up to 25 bank accounts to pay from. We will be launching an enhancement that will allow you to set up a payment account for each of your offerings and therefore can have an unlimited amount of bank accounts. This also means that each distribution payment would come from the offering entity name directly vs. your brand name.

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