Brokers and Agents have found many creative ways to manage their reimbursement process over the years. However, many still fail to follow the reimbursement procedures of the bank and scream when invoices are rejected. I have never worked with a bank that did not have a clear-cut reimbursement guideline yet, there are agents that just want to handle the reimbursements in a shabby and irresponsible manner. Do not bite off more than you can chew!

1.  Setup an invoice submission procedure with your vendors. Accept nothing less from each vendor. 

• Establish to submission area for your vendors. Email submission may work for brokers and agents working on a lower scale but it is always best to establish a submission area to keep track of and organize your incoming invoices. This area will also provide you with one location to download invoices when it is time to process for payment. If you are not using an online program, review Google App, MS Live Workspace, SharePoint, or another program that will allow unique access to your vendors. I created ORSSDesktop.com for this purpose. Depending on which transaction management program you are using, the vendors can email or fax in the invoices.
• Each invoice submitted for reimbursement must have the following items clearly indicated
  • The word "INVOICE"! Not Estimated, Quote, or Bid. There is a big difference and each is requested at different times during the property preservation process.
  • Invoice Date - The date the invoice was created.
  • Service Description - clear service descriptions helps the process.
  • Service Date - Service Date and Invoice Date should be listed separately. Include the service date (the date the services were rendered) next to each line item.
  • Full business address and phone number - each should be listed on all invoices, bids, estimates, and quotes.
  • W-9 - The W-9 form is required if the vendor will be paid from your expense account or the bank's expense account. Make sure you collect a new W-9 if the following applies
    • Name change
    • Ownership Change
    • Address change
    • Tax ID change
    • Business type change

• Have a copy of the vendors Certificate of Insurance on file and update yearly.
• Full contact Information - Obtain the full contact information of the vendor including the name(s) of the owners and person(s) that handle the bookkeeping.
• Require all vendors to submit invoices within 7 days of service. It less headache to have the invoices early and on time than to submit the invoices late. Even if the bank will only authorize invoice submissions once a month, have the invoices in your possession ON TIME!

2.  Payment System - Determine which bookkeeping system you are going to use. Determine beforehand if some of the following applies.

• Business or Personal account. Setup a business account
• Types of checks - Voucher, Wallet, or Personal
• When will you process your accounts payable
• Determine if the vendors will the vendors be places on the PWP system. If so, get it in writing and honor your commitments. All utilities are to be paid upon receipt, no exception!
• Establish a payment term and stick to it. Do not try to avoid or skip out on your vendors. Good business is good business.

3.  Bank reimbursement procedure - Stop trying to create your own rules and guidelines. The banks have created a set of guidelines in an attempt to remain consistent with the management of their funds. Ok, 95% of them have created a set of guidelines to remain consistent. The other +/-5% or less has another agenda. Don't think that you are the exception to the rule by trying to skirt around the guideline by

• Uploading incomplete forms,
• Not attaching a copy of the payment check,
• Failing to include the W-9 when required,
• Trying to bypass the correct department by submitting the reimbursement to the AM instead of the designated department,
• Uploading the reimbursement to the incorrect area yet, expecting payment,
• Not itemizing your invoice of services,
• Not including the service dates next to each line item,
• Not providing supporting documents such as before and after photos,
• Failing to sign and date when required, and more.

4.  Hold Out form - Ok, this is not another useless piece of document thrust upon you just to make your skin crawl or just to frustrate you. The hold out form serves a real purpose. It ensures that your outstanding invoices will be paid after the property has closed. Do not assume that because you submitted the invoice, that is all you need to do. Once you receive an offer on the property, it is time to complete the Hold Out form. List all unpaid invoices, date of submission, amounts, services rendered, service dates, and to whom payment should be made. Follow the deadline of submission by the bank.

5.  Reimbursement follow-ups - Do not wait until the last minute to follow-up on outstanding invoices. If you are keeping accurate records, print out a weekly A/R aging report. Call, email, fax the appropriate person regarding your outstanding invoice(s). Read the reimbursement procedure so you will know the bank's payment terms. Also, make sure you keep copies of all fax and email confirmation. Print and attach any page(s) that will show as proof of submission if you are working with a bank that has a history of engaging in selective receipt of your invoices. Send a copy of the A/R aging report to the appropriate individual if necessary. Make sure your report has enough detail to assist the individual during their research. Such information should include

• Asset number/loan number
• Work order number
• Complete property address
• Service description (summary)
• Invoice number
• Invoice amount

Group the aging report in order of bank, property/asset number, invoice date, invoice number. Also, provide an outstanding balance for each property/asset number and a total outstanding balance for each bank in the A/R aging report.

6.  Broker/Agent responsibility - It is your responsibility to make sure all invoices are submitted correctly and on time. Do not wait until the property has closed or several days before it closes to submit your invoices. If you want to handle the invoices yourself, schedule the weekly time needed to process your invoices so the vendors can get paid on time. Waiting 14+ days to submit invoices is poor practice, and waiting 10+ months decreases or eliminates any chances of your getting paid.

Get Assistance! If you are overwhelmed with the tasks of managing your reimbursements, do not wait until you are knee deep in paperwork and angry vendor calls. Poor decisions are often made under pressure and stress. Get the support you need now and not later. Be honest about the problems you are having and take responsibility for your non-actions.

Manage your reimbursements using common sense methods. Avoid not getting paid by getting your process in order and following the guidelines established by the banks. Don't try to re-create the rules, just follow it to ensure payment. Be resonsible and accountable. Use common sense.

Carolyn Nelson, Online REPA, Carolyn@OnlineREPA.com | www.OnlineREPA.com