When Are Funds Received?

The Crowd Supply Guide: When are Funds Received?

After spending months developing a new product, launching a crowdfunding campaign, and watching the pledges roll in, you are probably anxious to get started actually manufacturing your first batch of product to send to backers. As such, it’s important you understand when you can expect to receive your funds.

There are two basic types of transactions at Crowd Supply: crowdfunding campaign pledges and post-campaign sales. Each works a little differently:

Crowdfunding Campaign Pledges

These are pledges to live crowdfunding campaigns that will help launch a project. That means backers are giving money to a creator who will use the capital to fund the first manufacturing run and bring the product to life. In exchange for this early support, backers are first in line to receive the product, typically at a discount off the intended retail price.

Backers are charged only if and when the project meets its funding goal. Once the goal is met, you will typically receive their backers’ contributions within a 4-5 weeks after the campaing concludes.

Post-campaign Sales

For successfully funded projects, we typically place an initial stocking order with you at the same time campaign funds are transferred. This way, you can increase their initial production run to meet anticipated future demand. The exact purchase order terms, such as quantity, price, delivery schedule, and payment schedule, are discussed on a case-by-base basis and can depend on demonstrated demand during the crowdfunding campaign, among other factors.

The initial stocking order purchased by Crowd Supply serves to fill two kinds of post-campaign sales:

Pre-orders are sales of the product after the crowdfunding campaign ends but before the initial production batch has been completed. Pre-orders are next in line after campaign pledges to receive the product, also often at a discount from regular retail. Pre-orders are fulfilled only after all commitments to crowdfunding backers have been met.
In-stock orders are filled directly from Crowd Supply's stock of the product and usually ship within a few days of the order being placed.

We typically aim to replenish our inventory of a given product before it slips into backorder, but sometimes delays and shortages are unavoidable. We begin shipping backorders as soon as new stock arrives, and you can expect to receive payment for replenishment orders approximately 30 days after we receive them. (Customers are charged at the time of sale for all post-campaign sales, including pre-orders, in-stock orders, and backorders.)

We’ve built Crowd Supply to support new products as they evolve from crowdfunding to post-campaign sales. Each stage in this life cycle is aligned to both help creators and protect backers.

Question not answered here? Contact us to see how we can help.

The Crowd Supply Guide: Table of Contents

For Everyone

Proclamation of User Rights

For Backers

For Creators

Getting Started

Before Your Campaign Launches

During Your Campaign

After Your Campaign Concludes