Last night we took the restrictions off the API Doc’s and pushed them live, it’s ready to go! Click her to see the API Doc’s.
This enables you to easily send investor remitences via ACH. Process is simple – you tell us how much (bulk number) the investors in a specific security are getting (e.g. $10,000 to investors in XZY Fund II who own Senior Notes), we ACH pull that from your account and then disburse it to all your investors pro-rata. We then maintain ledgers of all payments, which you can access at any time. At the end of the year we’ll provide you with tax reporting files/data to make it easy for your accountant to generate 1099’s and K1’s as needed.
We realize it may take platforms a bit of work to code into this API, so in the next 10 days we will also give you the ability to manually trigger a payment event via your dashboard on apps.fundamerica.com
And we realize you may want to make non-pro-rata distributions at times. So, also in the next 10 days, we will provide you with an easy way to edit the payments via a form that we’ll pre-fill with pro-rata #’s which you can then simply modify where appropriate.
Q. Is this ACH only?
A. Yes. We don’t have a way to batch process checks. Will we make exceptions at times? Sure, we’ll do what we need to do, but those are operationally traumatic so we really discourage it.
Q. Is this an optional, stand-alone service?
A. No, we only provide this service for securities where we handled escrow. That’s the only way we can “know” the payee and ensure AML was run properly.
Q. How much does it cost?
A. We don’t charge an “event” fee (most registered transfer agents charge that, we don’t), nor do we charge a set-up fee, an accounting fee, or a records-retention fee. It’s simply $0.50 per transaction/payment.
Q. When will this be available?
A. Right now (via API). In about 10 days via manual controls in your dashboard.
Q. What about mid-year ownership changes?
A. Of course that will happen, a lot. There are all kinds of reasons why your investors will make changes to their ownership positions (e.g. estate issues). We track all data per investors and never delete or modify data. So your ledgers and tax files will correctly account for payments made prior and subsequent to ownership changes. This will seamlessly fold into our transfer agent services within 45 days.
Q. Do investors need to open an account at NetBank?
A. They can if they want (our friends at BofI would love to see them do that and we highly encourage them to do so). But we’ll send payments to them whevever they bank.
Other questions? Reach out to me or the team st FundAmerica anytime.