Digital payment solution for monthly investor dividends

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June 30, 2022

by a professional in Nashville, TN, USA

I'm working with a client who will be issuing fixed dividends to his preferred equity partners on a monthly basis. They are currently planning to cut checks for dozens of investors, which seems inefficient and costly. Has anyone worked with a digital payment solution that might work for this use case?

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Reply by a searcher
from University of Texas at Austin in San Antonio, TX, USA
Warren, My suggestion would be to have your equity partners fill out ACH authorizations. Populate your accounting system with their ACH data. Then when the distributions/dividends are calculated produce the ACH payment file which can then be imported to your banks online portal for processing. An application like Intacct (and I think Allvue) can do that for you. If you aren't using a more sophisticated accounting system I believe you can even create a csv file in excel that gets uploaded to a bank and creates the ACH batch. I would start by speaking to your bank about what you would like to do. You might even consider opening a secondary account with a bank that has more advanced functionality for this purpose alone, but most business oriented banks should have this capability.
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Reply by a searcher
from Harvard University in Boston, MA, USA
I know fundamerica has this ability from a demo I’ve seen. But I don’t think you would save money with that system unless you were issuing hundreds of not thousands.

Any reason they aren’t set up via bill pay/ACH? Our Chase business account includes a re-branding of bill.com called cash flow 360 that is how we would handle this
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