Deep Dive4 min read

PID vs SID: Two Ways Repayment Flows

Every deal on Vridi uses one of two repayment structures. Understanding the difference tells you something important about where the risk sits — and who controls the repayment.

Why there are two models

When a deal matures, someone has to send money somewhere. The question is: who sends it, and through which account does it flow? The answer depends on the commercial relationship between the seller (borrower) and the buyer.

In some cases, Vridi can arrange for the buyer to pay directly into a Vridi escrow account — this is the PID (Payer Identified) model. In others, the buyer pays the seller as normal and the seller remits through Vridi — this is the SID (Seller Identified) model.

PID — Payer Identified repayment

In a PID deal, the buyer is aware that the invoice has been discounted and agrees to pay directly into Vridi's PID Collection Account when the invoice falls due.

PID repayment flow

Buyer: Pays invoice amount into Vridi's PID Collection Account on due date

PID Account: Vridi reconciles payment against the deal

Investor VAs: Principal + returns distributed proportionally to each investor

Why PID is preferable from a risk standpoint: The repayment bypasses the seller entirely. Even if the seller has liquidity problems or attempts to divert funds, the buyer pays Vridi directly. The investor's return does not depend on the seller's cooperation.

PID deals are available when Vridi has a direct relationship with the buyer (typically in programmatic or anchor-led structures where the same large corporate buyer appears across many deals).

"In PID, the seller can't intercept the repayment. Funds flow directly from buyer to escrow to investors."

SID — Seller Identified repayment

In an SID deal, the buyer pays the seller as normal (into the seller's own bank account). The seller then routes the repayment through a dedicated SID Escrow Account assigned to that deal or buyer program.

SID repayment flow

Buyer: Pays invoice amount into seller's bank account on due date

Seller: Transfers equivalent amount into the SID Escrow Account for this deal

SID Escrow: Vridi reconciles the payment

Investor VAs: Principal + returns distributed to investors

The additional risk in SID: There is a step where the seller receives the buyer's payment and must remit it. If the seller is experiencing financial difficulty, there is a window where funds could be delayed or misappropriated. Vridi monitors this step closely and uses NACH mandates and legal agreements to enforce repayment.

SID structures are typically used when Vridi doesn't have a direct relationship with the buyer, or when the buyer processes payments in bulk through their existing systems and can't redirect individual invoice payments.

Side-by-side comparison

Repayment routeBuyer → Vridi escrow directlyBuyer → Seller → Vridi escrow

Seller involvement in repaymentNoneRequired — seller must remit

Diversion riskVery lowModerate (Vridi has legal recourse)

Typical use caseAnchor buyer programsSingle-buyer or new-relationship deals

Risk rating impactTypically lower riskSlightly higher risk priced in

PIDSID

What this means for you as an investor

The repayment model is shown on every deal card. PID deals generally carry slightly lower risk for the same return, making them preferable when available.

SID deals aren't inherently bad — Vridi has legal protections (NACH mandates, personal guarantees, promissory notes) that create strong incentives for repayment. But PID provides an additional structural safeguard by removing the seller from the repayment chain entirely.