Funding Options

DealMaker offers a wide range of payment processing options to companies.  At DealMaker we know every deal is different, and so to encourage investor participation we offer a variety of payment methods ranging from the quick and simple digital payments as well as offline means. Below you will find a breakdown of the payment options available and some unique considerations for each.

Digital Payments

Credit Card:

  • The ease of making a payment via credit card certainly makes it an investors favoured method.
  • This is available to both US and Canadian companies. 
  • Successful credit card payments will be reflected on the investor dashboard automatically.
  • Payments made by credit card will be automatically released to the company bank account linked to DealMaker once: (1) funds have been processed; and (2) the company has accepted that subscriber’s agreement. 
  • Publicly traded companies will want to carefully consider timing implications for issuance of securities due to chargebacks, and nuanced consideration must be given before using.
  • DealMaker automatically earmarks funds for chargeback periods. Typically this is 5% for 90 days and is released automatically after the period has ended. There are also investor chargeback periods so you will need to earmark funds for holdback to cover this possibility.  
  • By default, the account will be associated with the currency the deal is raising funds in, however this can be amended.  For example: a Canadian issuer will have funds settle in CAD unless DealMaker is provided a USD bank account for payouts, before you start to process payments.  This process may be amended slightly for companies operating in industries classified as high risk for payments. 

ACH Transfer:

  • With lower fees than credit cards, this is also a digital payment favourite.  It applies to American investors only.
  • Many US investors have ACH accounts already connected to their DealMaker account. When you offer ACH, you are leveraging the fact that many investors can pay with a click of a button. Americans can link their bank accounts via DealMaker, providing a very secure and easy payment option for larger amounts.
  • You should allow up to 7 business days for ACH Transfers to be cleared by the sending and receiving banks.  Until the transfer is cleared, the investment will show as “pending”.
  • DealMaker automatically earmarks funds for chargeback periods. Typically this is 5% for 90 days and is released automatically after the period has ended. You will also want to plan for a holdback period in case of chargebacks.

With DealMaker’s new automated payouts functionality, you can now have digitally transferred funds released to your bank account quicker and easier than ever.

Offline Payments

Wire Transfer:

  • Offering wire payments will require clear routing instructions for investors and often details of a domestic bank when raising in multiple countries. 
  • You should allow up to 4 business days for wire transfers to be received and then reconciled to reflect the investment.  
  • If it is an international wire transfer the wire will take longer to reach its target account, so expect it to take up to 5 business days total.
  • Often if the transfer is within the same bank, wires can be documented as an internal bank transfer, which can be harder to reconcile.  With Payments Deluxe, DealMaker can help to assist you with this process.
  • This is a cost effective option for larger transfers, and is irrevocable.

Mailed Check:

  • Check delivery times vary due to local mail delivery services. 
  • Packages are the responsibility of the investor until acknowledged as received by the issuer, so please consider tracking and insurance options at your discretion.
  • Once the check has been deposited, please allow 3-5 business days for the check to be marked as a “pending” transaction.  Once a check has been deposited it requires approximately 10 business days for the receiving bank to pull funds and “clear” them. Once cleared, the investor can be marked as “funded” and they will receive an automatic confirmation email notifying them of the status update.
  • Companies can close on funds that have not “cleared” at their discretion and may wish to discuss this with counsel when closing is approaching. More details on this can be found here.
  • Any check deposits will need to be clarified as part of the unmatched transaction report that is sent out weekly.

    Due to COVID-19, check delivery times may vary and we caution against using this payment method.