A 📝Cash Distribution Agreement can be implemented for counter parties with various levels of trust, overhead and cost.
- Weekly Manual ACH - this is what we currently do for a few of our loans. Each week, the portfolio monitoring team initiates the transfer by hand.
- Stripe ACH - a transfer initiated "the instant" a deposit hits a certain account, for one cost.
More secure methods of cash redirection can be developed, such as a bank account dedicated to this specific purpose. There are two implementation methods:
- 📝Merchant Account Escrow - has the advantage of more security for the distribution parties. Becoming a merchant account ISO isn't complicated.
- Partner with a Trust Company
Next -> 📝Using a CDA at Assembled Brands