The Smart way to pay Professional Fees Professional Advisors User Guide PO Box 113-027, Newmarket, Auckland 1149. Level 3, Ideal House, 4 Gillies Ave, Newmarket. 1
Table of Contents About feesmart... 4 Offering the service... 5 Website... 5 Staff Briefing... 5 Mail Stuffer & Reception Brochure... 6 Newsletter... 6 Invoices & Statements... 7 Frequently Asked Questions... 8 When does my practice get paid?... 8 Are faxed/scanned loan applications sufficient?... 8 What are the interest rates?... 8 Do we get training?... 8 What happens when a client doesn't pay?... 8 What happens when a loan reverts?... 9 Are there any penalties for early repayment by the client?... 9 What happens if a client disputes an invoice?... 9 I have a client invoice outside our credit limits... 9 Why would I offer this option to my best paying clients?... 9 Client Limits... 10 Related Parties... 10 Processing Documents... 10 Reversion Process... 11 Website User Guide... 12 LOGIN DETAILS... 12 Home Page... 13 2
Quotes... 14 Tips... 16 Changing Existing Quotes... 16 Copy a Quote... 16 feesmart Flexi... 17 FeeSmart Flexi Guide... 18 Loan Enquiry Search... 20 Loan Enquiry... 21 Details Tab... 21 Transactions Tab... 22 Letters Tab... 22 Payments Tab... 23 Noted Tab... 23 Repayments Tab... 23 Reports... 24 Broker Report... 24 Loan Listing Report... 24 3
About feesmart feesmart is distributed by Get Smart Financial Solutions Ltd (GSFS) with all finance being provided by feesmart Finance Ltd (FFL). A carefully managed distribution strategy has meant FFL/GSFS enjoys ongoing and sustainable growth. Our financing structure and administration systems are designed to be both robust and flexible. Finance and loan administration is provided by FFL, who in turn maintain a close and valued partnership with wholesale bank funders of the loan portfolio. 4
Offering the service Here are some ideas to get the most out of the facility: Website Add a section (or amend your existing section) to advise clients that you have a monthly payment option. There are several gif images in the resource section of the feesmart website for you to use. For example We suggest you link this gif to either: 1. A page on your website that describes feesmart or; 2. The portal for clients at www.feesmartdirect.co.nz Staff Briefing Let your team know about feesmart. Key points are: What: How: Cost: We now offer a monthly payment option. The firm gets paid 100% upfront and clients repay over 6 or 12 months. The system is simple and involves the client completing a short loan agreement and Direct Debit. Documents are arranged online directly by the clients or via a secure login for the practice. There is no cost to the accounting or law firm. The client pays a small set up fee ($50) and a flat interest rate to use the service. 5
Mail Stuffer & Reception Brochure FRONT BACK The standard feesmart brochure is designed to also go in a brochure stand in your reception. You may order more brochures via the email info@getsmart.co.nz they are free. Newsletter If you have a client newsletter, be sure to occasionally include a small item advising your firm s payment terms. We suggest an initial introduction describing feesmart. Some draft material is available in the resource section of the website see www.feesmart.co.nz/accountants/resource_section 6
Invoices & Statements When posting invoices and statements, be sure to include a feesmart mail stuffer. Tip One: Tip Two: Tip Three: Don t try too hard to guess which clients will use the service offer it to all. Add a note to your invoices and statements advising your client that you have a monthly payment scheme or talk to our office about which systems are fully automated. If you are running MYOB, AO, AE, Xero or ifirm we have a calculation that can be added to the bottom of invoices with 6 and 12 month options. 7
Frequently Asked Questions When does my practice get paid? Five working days after we have successfully received the first instalment. Are faxed/scanned loan applications sufficient? Yes, as long as the scanned copy is clearly readable as judged by our loan administrator. If the original documents are required loans will be loaded but practice will not be paid until the original papers are received. The practice will be advised in this case. What are the interest rates? Interest rates will vary from time to time and from firm to firm. Generally rates will be within a band of 7.5% to 11% (flat) for a 12 month loan. Do we get training? Once your practice is setup you will receive training and information on how to use feesmart. Additional ongoing assistance is available via the website and telephone and there is no cost for this. Also check out our video tutorials in the Resource Section. www.feesmart.co.nz/accountants/resource_section What happens when a client doesn't pay? feesmart will be responsible for collecting regular monthly repayments from your clients and reconciling payments. If a client misses a payment feesmart will contact the client and arrange to process the payment again on a date that suits. Should the client fall more than two installments behind will contact your practice and discuss options for collection or whether the balance should revert. Should a debt collector be required feesmart can arrange a referral. 8
What happens when a loan reverts? feesmart is an agreement between a funder, your practice and your client. Your practice undertakes to repay the balance of the loan (excluding unearned interest) if your client defaults. Defaults are very rare. The practice is invoiced for the outstanding principal with 14 days to pay. Are there any penalties for early repayment by the client? Clients may settle their loan at any time by paying the outstanding principal (calculated by rule of 78) and a small processing fee of $50. Please call the office for the exact figure and validation date. What happens if a client disputes an invoice? Clients confirm and accept invoiced amounts as part of the funding process. The funding documentation will actually enhance your recovery position in the unlikely event of non payment. I have a client invoice outside our credit limits The credit limits assigned to your firm are for fast tracking approval of loans. Anything outside this can still be considered but more details may be required e.g. credit check on client. Call us for more information. Why would I offer this option to my best paying clients? All clients have the potential need for fee funding from time to time. Don t risk not offering it to everyone. In the insurance world some of the largest firms in NZ still use premium funding for $1m+ insurance premiums. They have the cash but prefer to use it for other purposes. 9
Client Limits Each practice is assigned client and practice limits. The client limit is the maximum amount that can be funded per client group, e.g. a family trust and a limited company will be treated as ONE client unit. If you have a client over the limit just let us know and we will advise if the additional amount can be funded. Related Parties Any transactions associated with entities or people related to the Introducer must firstly be discussed and approved by feesmart. For example if the accounting firm has common shareholders or directors with the funding client. feesmart Processing Documents The process of setting up a loan is simple. Either feesmart, the practice or the client prepares: a) Loan Agreement, and b) Direct Debit form. Email, fax, or post them to feesmart. 1. Initial debit is deducted on first instalment date (includes setup fee); 2. Practice is paid principal amount five working days after successful first debit. 10
Overdue accounts and reversions FFL follows a standard process in following up clients in arrears: Day 1 Default FFL will call the client to make arrangements to redraw. (Dishonour letter 1 is sent) Day 7 Redraw Unless other arrangements have been made FFL will redebit the clients account. Day 8 2 nd Dishonour FFL will call the client again to discuss options or another debit date (Dishonour letter 2 is sent). The practice is copied into this letter. Day 21 If no resolutions are reached, FFL contacts the client again to arrange payment. Day 30 Double debit Two months repayments are debited from the clients account and the client and practice are being informed. If this dishonors then the reversion amount is invoiced to the introducing practice with 14 days to pay. Once the principal has been repaid FFL will assign the fees and charges to the practice. After this the practice deals with the client directly. 11
Website User Guide LOGIN DETAILS Logon via www.feesmart.co.nz USER ID: PASSWORD: CLIENT LIMIT: PRACTICE LIMIT:... 12
Home Page Professional Advisors User Guide The online system is based on two areas, Quotes and Loans. A quote is an application documents that has been prepared and once it has been received and approved by an FFL, a loan number is assigned and the quote becomes a loan. Loans View all details of your clients loans under feesmart Quotes - Prepare documents or edit existing quotes All documents received before 12pm are loaded that day and if necessary the direct debit can be run on the same day. If documents are received after the due date the first instalment is usually taken seven days later and the client is advised of this in the welcome letter. If the first repayment date is wrong simply write the correct date and initial the change. 13
Quotes New Quotes Step 1: Complete all the fields under both the quote details and client details tabs with the client information. Please be aware, when you use feesmart for a Trust client, you must also note the names of the trustee(s) as trusts are not a legal entity capable of forming contracts. We will also require a copy of the front page of the trust deed noting the names of the trustee(s). Quote Details Client Details 14
Step 2. Go back to quote details tab and Click to calculate the monthly repayments on the Quote Details tab. Step 3. Click This will both save the quote and print documents for the client to sign. Please follow the instructions in the Trusted Site Guide (found in the Resources section of www.feesmart.co.nz) if you are having trouble downloading documents. Also refer to Internet Explorer 10 issue on website. If you wish to come back to the quote then simply save and close. 15
Tips Professional Advisors User Guide GST Number is a unique identifier for clients, if a client doesn t have a GST number then company number is fine. Amounts over $1,000 are able to be calculated over 6 or 12 month terms. Amounts between $500 and $1,000 are only 6 month terms. Invoice/Statement numbers must be entered and the invoice produced when requested. If documents are received more than one day after the first instalment date, the first debit will be run a week from the day documents are received. This is outlined in the Welcome Letter sent to the client. If any of the details on the printed documents are incorrect you can simply write the correct details clearly and initial. The minimum amount that can be funded on feesmart is $500. Changing Existing Quotes Use to retrieve and edit quotes, remember to save the changes and reprint documents for signing if necessary. Copy a Quote This function is very useful for multiple clients with the same contact details. Click Copy a Quote then choose the existing quote you wish to copy. This will be assigned a new quote number on saving. 16
feesmart Flexi feesmart Flexi allows existing clients to add another loan to their feesmart account. This does not pay-out the existing loan(s) but adds an additional loan.there is no requirement for the client to complete further paperwork as authorised by Clause 3.3 of the Loan Application as below. 3.3 Further amounts: You may from time to time request FFL in writing to extend the scope of the Facility to cover any other amount incurred or to be incurred by you in respect of Professional Supplies, provided that such requests must be made through the Professional Advisor and otherwise in accordance with any requirements notified by FFL. There are two conditions for renewal; The client name, GST number and bank account must be the same as the original feesmart Loan. The client has authorised this request to fund additional amounts in writing. This can be by email/fax/letter and this may be asked for during our audit process. Step 1 Obtain written permission from the client to add another loan. Step 2 Print the documentation with the new amount through feesmart Flexi following the steps below. Step 3 Check, sign and send to our office for processing. Once the document is received this will be loaded and settlement will be in line with standard pay-out terms. The client will be sent a welcome letter together with a copy of the additional drawdown advising them of the new amount and details. 17
FeeSmart Flexi Guide 1. Go to Quotes and then New quote. 2. Click on. This will display a list of all the loans under your practice. 3. Next to the name in the list, select the client you wish to renew. 18
4. Check the existing contact details are correct within the Quote and Client Details tabs. Start by writing the new invoice amount on the Amount tab and then Payments, First Repayment Date, and Invoice Number(s) and click 5. Once completed then as normal. The next option will be to choose to print or email. 6. The renewal document that prints out needs to be signed by an authorised signatory of the practice or the client and sent to feesmart for processing. 19
Loan Enquiry Search 1) To lookup a loan hold the mouse over Loans and select Loan Enquiry. 2) Click the button shown to bring up a list of all existing clients. Click Select to open the enquiry screen for that particular client you wish to see. Click here to view all clients loans 20
Loan Enquiry There are a number of tabs and some of the information is repeated. The main tabs are: Details Loan Summary eg instalment amount, due date, amount outstanding. Transactions Account payment. Letters Copies of all old correspondence appears here, e.g. letters and emails sent to client and practice. Payments Settlement to Practice. Repayments Breakdown of interest on each payment. Notes Details of client contact. Details Tab This shows the clients details along with their instalment information e.g. amounts, first and last payment dates and date of next instalment. Overdue payments appear here. 21
Transactions Tab This shows account conduct. The first three lines are loaded automatically on approval and client payments/dishonours are shown here. A statement can also be generated by clicking Client statement. Letters Tab Copy of all communications sent via post. 22
Payments Tab Professional Advisors User Guide This is the details of the settlement for the loan. Date due, status and amounts to be paid are displayed here. Non = Payment not due yet. Paid = Payment made on due date. On Hold = Loan not finalised e.g. original docs not received or first instalment not cleared. Notes Tab If FFL has for any reason made contact with the client a note will be logged here. Copies of the original documents are scanned to every loan and are available to download if you require. Repayments Tab 23
Reports Professional Advisors User Guide There are reports available to get a summary of your feesmart clients. Located under Quotes is the Broker Quote report which shows a summary of the quotes and loans in feesmart. Once client application documents have been received by our office they are approved and assigned a loan number. The below report shows this number along with the approval date and the status. Pending means it has not been processed and won means it has been approved. The Loan Listing Report has more details about the loan e.g. amount financed, loan number, how many instalments have been paid and the balance outstanding on each loan and as total. For video tutorial please check our website or call us and we will be happy to assist. 24