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Grant lifecycle and status

Learn how the grant status evolves throughout the grant lifecycle.

Grants undergo changes over time and their status can be modified based on various events. For instance, grants that have been approved are automatically activated by a background processing system, which initiates the fund disbursement process.

You can monitor changes in the grant status using either way:

The lifecycle of a grant consists of two main stages:

  1. Grant initiation: During this stage, Adyen prepares the requested offer as the user applies for business financing. Status updates at this stage trigger only capital notifications. No transfers or transactions occur during grant initiation.

  2. Grant management: This stage involves managing and overseeing the funds that have been disbursed to the user. Grant management status updates trigger capital, transfer, and transaction notifications.

The following diagram and explanation detail the various grant statuses that occur during these two stages.

Grant lifecycle

Grant initiation statuses

Status Description
Requested This status indicates the initial stage of the grant initiation process, showing that a formal request for a grant has been successfully submitted.
Reviewing This status indicates that the user has accepted the offer, and Adyen conducts a thorough secondary review of the grant request. This re-evaluation is crucial, as it considers any changes in the user's financial situation or eligibility that may have occurred between the offer creation and acceptance, such as acquiring additional financial obligations from other financial products.

In specific situations, Adyen may require your users to provide additional information about their businesses, such as when the total user's exposure meets or exceeds the threshold, typically EUR 25,000.

User action needed:
  • When requesting a higher grant amount, the user must submit the required information before the grant offer expires.
Approved This status indicates that the grant request has successfully met all necessary criteria and has received final approval from Adyen.
Rejected This status indicates that the grant request did not meet the required criteria and has been declined by Adyen.
Cancelled This status indicates that the user has chosen to withdraw their grant request. This action can occur at any point during the grant initiation stage, up until the grant transaction is formally booked and the grant transitions to the Pending status.

Grant management statuses

Status Description
Pending This status indicates that the user has accepted the offer, marking the completion of the grant initiation stage. The grant remains pending until:
  • All required actions are completed on the user's side.
  • The grant transaction is booked to the user's balance account.
  • The security cooldown period ends. For example, if a user updates their bank account details (transfer instrument), Adyen waits 72 hours before processing transactions to the new account.

User action needed:
  • The user must sign the Terms of Service.
Failed This status indicates that the grant disbursement was unsuccessful. This can happen for various reasons, such as when the user fails to complete the required actions (like signing the Terms of Service) before the offer expires, or due to unforeseen technical or administrative issues.

This does not affect the user's future eligibility for business financing with Adyen.
Active This status indicates that the grant has been successfully disbursed to the user, marking the beginning of the grant's active phase.
Repaid This status indicates that the user has successfully met all repayment obligations, and the grant has been fully settled.
Revoked This status indicates that the user has requested to revoke the grant. Depending on regional regulations, a grant may be legally revoked within a specified timeframe after offer acceptance. When a grant is revoked, the principle amount is paid off and the fees are waived.

This does not affect the user's future eligibility for business financing with Adyen.
Written Off This status indicates that the grant has been officially classified as a write-off, with the likelihood of recovering the outstanding amount very low.

The user will not qualify for business financing with Adyen for a certain period based on our risk appetite.

See also