ACH setup instructions
The following article provides information to fund managers guidance on how to setup ACH on the Avestor system.
Avestor utilizes Plaid & Dwolla as our ACH partners. We use Plaid to setup your bank account and Dwolla is utilized to store your bank information and conduct transactions. The investor will need to login to their bank account using their bank credentials. They can then select the bank account to utilize for fund transfers.
Individual Investor Verification
Individual investors are able to directly connect their bank accounts from the investor portal. Know Your Customer (KYC) and background check verification is performed automatically using an investor's social security number.
The following items will be required for investors to connect their bank accounts:
- Social security number
- Your bank account online login credentials*
* Avestor platform does not have access to and does not save any of your bank data with the exception of the bank name and account type (savings, checking…) to help you identity the account when initiating transactions from our platform.
Business Entities Verification
For business entities, verification is more complex since KYC must be performed on the business entity itself.
The following items will be required for business entities to connect their bank accounts:
- Business Manager - name and address of the person who is setting up the business account. Typically this is the a key owner, partner or executive of the business
- Business Information - Name, Business Type (LLP/Partnership or LLC) and EIN of the business entity.
- IRS EIN letter will be required
- Beneficial owners of the business (>25% ownership) - Name, address, copy of drivers license and social security number.
- Controller Details – name, address, last 4 digits of the social security number & birthdate of the controller for the business.
If the business has a beneficial owner(s) owning >25% of the business then those need to be added using the respective beneficial owners setup page. If no individual or individuals own >25% of the business, one primary individual will still need to be provided as the key beneficial owner.
Setup Bank Accounts
- Once the customer record is created and is in “verified” status, a bank account can be setup for each of the business type. Bank accounts for individual investors will need to be setup by the investor from the partner portal
- Avestor utilizes Plaid. The investor will be presented with a set of banks to select from. They will need to login to their bank account using their bank credentials. They can then select the bank account to utilize for fund transfers.
Avestor permits one way transfers of funds for fund managers and investors. Investors are able to authorize transfer of funds from their bank account to the fund bank account. Fund managers are permitted to authorize transfer of funds from their fund bank account to an investor account.
If an investor seeks to take a withdrawal from the fund, they must contact their fund manager and request a withdrawal. Investors cannot automatically pull funds from the fund bank account.
In similar fashion, if an investor has committed funds to an investment, the investor must initiate the ACH transfer of those funds. Fund managers are not permitted to pull funds from an investor's connected bank account.
The transaction history page provides a list of transactions performed.