Configuring an Estimated Distribution Schedule allows you to share projected distributions with subscribers. Actual distributions remain at your discretion.
Where: In addy Business, navigate to Distributions then Estimated Distributions
The Estimated Distributions Form allows issuers to detail when and how investors may receive periodic dividends and the final disposition (exit) of their investment. You can set project launch and exit dates, estimate the first distribution date, set a distribution frequency, and more! Each field is equipped with tooltips to guide you through the process.
Key Components
- Project Launch Date: The starting point of the project's financial timeline.
- Investment Amount: Initial investment by addy subscribers
- First Distribution Date: Estimated date of the first distribution to investors
- Distribution Frequency: How often distributions will occur (monthly, quarterly, annually).
- Exit Date: The anticipated end date of the investment when final dispositions are made.
- Exit Amount: The anticipated gain or loss relative to the initial investment when the project reaches disposition.
Questions and Answers
Q: What is the 'Project Launch Date' and why is it important?
A: The 'Project Launch Date' is considered Day 1 for all project financials. It is crucial if you are providing periodic cash distributions, as the distribution amounts for each time period are calculated based on this date. For example, if you expect to pay out $12,000 in distributions by Year 1, that amount is expected to be scheduled for payout (if not paid) by one year past the Project Launch Date.
Q: How should I choose the 'First Distribution Date'?
A: The 'First Distribution Date' should be estimated based on the project's financial planning and the expected cash flow. It marks when the first dividends will be paid to investors. For detailed guidance, visit this article
Q: What does 'Distribution Frequency' mean?
A: 'Distribution Frequency' refers to how often you plan to distribute dividends to investors. You can choose from monthly, quarterly, or annually. This frequency will be calculated in relation to your First Distribution date. For more information, check out this article
Q: How do I set the 'Exit Date'?
A: The 'Exit Date' is when you anticipate the project will conclude, and the final financial dispositions are made to investors. This date should be estimated based on the project's duration and financial goals.
Q: What should I enter for 'Initial Investment' and 'Estimated Disposition Amount'?
A: In 'Initial Investment', enter the total amount of capital raised from addy subscribers at the start of the project. For 'Estimated Disposition Amount', input the total expected amount to be returned to investors at the project's end. A negative amount indicates a loss.
Q: What happens if I need to adjust distribution estimates during the project?
A: Adjustments can be made to the distribution estimates by updating the form fields as needed throughout the project's lifecycle. It's important to communicate any changes to investors promptly.