This article will walk through how to create, review, and process a distribution including both notifying your investors and sending payments through InvestNext Payments.
Set-up: Ensure that you have already created a Distribution Plan and linked your bank accounts.
STEP 1: Navigate to the relevant Project and select Distributions.
STEP 2: Click on New Distribution.
STEP 3: Set-up your distribution according to the below fields:
Distribution plan: select the relevant pre-created Distribution Plan.
Date: select the date on which the distribution will be recorded.
Select the amount to distribute,
a. Pay down all hurdles: this will allocate the exact amount of funds needed to meet all hurdle requirements.
b. Distributable Amount: set a custom total dollar amount to distribute.
Optional - Name: add a custom name for the distribution.
STEP 4: Draft Status: Review the allocated amounts, broken down by each waterfall hurdle.
NOTE: When you run the distribution to the Draft status, you can also add a Custom Label to each Investor's distribution.
IMPORTANT: Custom labels should be kept to 64 characters in length. If they are longer than 64 characters, the labels will be truncated in the Investor's view.
STEP 5: After completing the review, select Confirm Allocations to create the distribution records.
NOTE: If you would like to manually adjust any allocations, simply double-click on the amount and enter the new value.
STEP 6: Confirmed: You will now see a single payment amount displayed for each investor, which is the sum of each hurdle's allocation.
By scrolling to the right within the table, you can review the Payment Type as well as confirm whether the investor has a Linked ACH Account and Mailing Address.
NOTE: An Authorize Payments option will appear which will enable you to set a starting cheque number and optional memo to print on the cheques.
Once the payment amount and type have been confirmed, select Authorize Payments.
STEP 7: Authorized: Once the payments have been authorized, you complete a final review of the payments and optionally choose to send an automated message to your investors to notify them of the incoming payment by selecting Send Notifications.
Then, select Send Payments.
Notifications: If you choose to send notifications at the Authorized stage:
Investors using Payment Method: Auto Payment (ACH & Checks) will receive a notification from the system of Upcoming Distribution - IF the option to send the notification to Auto-Payment Investors is selected.
Investors using Payment Methods: Manual: ACH, Manual: Check, Manual: Wire, and Manual: Other will receive a notification from the system of Upcoming Distribution.
STEP 8: Sending Payments: Complete the final confirmation steps, outlined below, to process payments.
Confirm the payment sources (pre-configured in project settings - how to).
Review the fee breakdown.
Enter your password.
Select Send Payments
Notifications: The system will send the following notification(s) when the Send Payment button is clicked:
For Payment Method: Auto-Payment:
ACH only - the investor will receive an ACH Payment Initiated notification
Check - the investor will receive a notification once the check has been generated and has been delivered to USPS and put in the first delivery truck of its journey.
For Payment Methods: Manual: ACH, Manual: Check, Manual: Wire, and Manual: Other:
The system does NOT send a notification for these Payment Methods at this stage of the distribution.
For Reinvested distributions:
When you run a distribution through completion, a notification will be emailed to those investors who are participating in Reinvestments:
