The Repayment Process
Each quarter, businesses are expected to upload a revenue report for the prior quarter. Based on the note agreement for that specific business, Mainvest calculates the total amount owed to investors (based on the revenue share percent) and then splits that amount proportionally among investors based on the amount they invested.
Businesses are notified on the first day of each new quarter to complete this process, and they have 25 days from the start of the quarter to upload their report before being considered late. For security reasons, investors cannot see the report itself, but are able to see the amount of revenue generated.
Once a business submits their repayment, it can take 5-7 business days for those funds to reach custodial accounts. Once a withdrawal from your custodial account is initiated, it can take 1-3 business days for those funds to reach your account.
Initiating an investment on Mainvest automatically creates a custodial account under the user's name with our third party banking partners, Evolve and SynapseFI, who manages bank account transactions and verification. At this time, the custodial account serves no purpose other than to retain repayments.
Mainvest custodial accounts allow you to withdraw funds on your own terms rather than direct deposit so you have greater control over your transactions. If you invest in multiple businesses, or multiple times in the same business, you may have multiple repayments happening at once. Custodial accounts allow you to make one deposit whenever you'd like to withdraw funds into your personal bank account.
Lastly, Custodial accounts make it easier to change bank accounts and still have somewhere for the repayments to exist. Without them, a repayment would sit in a businesses' bank account waiting to be withdrawn.
How to withdraw to my bank account
Withdrawing funds is simple. Once funds settle in your custodial account (again, this can take around a week from the business uploading the revenue report) you can navigate to your transactions tab and click "withdraw." If you have no open investments (meaning none of your portfolio businesses are still within their fundraising round) you can switch out your bank account in the bank accounts tab, if needed. However, due to security reasons, if you need to switch out a bank account that's being used in an open investment, please contact support.