The customer paid you directly, but the collector has invoiced a fee

Direct payment does not answer the fee question

The large overdue customer finally transfers money straight to your business account. The collection agent then invoices a commission. Before accepting or rejecting the charge, read the engagement and identify what payment event the fee relates to. Do not assume that money bypassing the agent either eliminates every fee or automatically makes the invoice correct.

Match the receipt to the referred account

Imagine a supplier referring an overdue account to an agent, then receiving a transfer covering both old invoices and new trading. Record the receipt and its supported allocation. Keep the referral instructions, customer remittance and account history together. The total bank deposit may not answer which amounts fall within the engagement being relied on for the commission.

Read the fee arrangement

Business.gov.au recommends clear contractual terms and advice about unclear wording. Give the adviser the signed collection engagement, any variations and the fee invoice. Ask what work or recovery triggers the fee and which amounts the calculation includes. This article does not decide the enforceability of a particular collection charge or prescribe a standard commission rate.

Source: business.gov.au: Prepare a contract

Request a transparent calculation

Ask the agent to identify the referred invoices, receipt basis, rate or fixed charge and any separately claimed costs. Compare those details with the actual agreement. In the supplier's example, establish how the agent treated the new-trading component rather than simply applying the quoted percentage to the whole transfer yourself. Keep unresolved allocation questions visible until the supporting evidence is available.

Update the collection instruction

Tell the agent promptly about the direct receipt and provide the relevant information through the agreed channel. Confirm the remaining account position and what further action, if any, is authorised. Do not let continuing collection use an outdated balance while the fee is debated. Keep the customer debt and your separate obligation to the agent distinguishable in the records.

Record the supported net outcome

Once the fee position is explained or resolved with advice, reconcile the recovery and related costs in the accounts. Avoid describing the entire receipt as freely available profit before existing commitments are considered. A successful collection still needs a clear closing record: what the customer paid, what remains outstanding and what the agreed recovery service actually cost.