How to Prepare a Debt for Referral

Confirm the essentials

The strongest referrals start with accurate basics. Confirm the debtor's correct legal entity first: a sole trader, a company and a trust are all treated differently, and chasing the wrong party wastes time. Check the trading name against the registered name, and note any directors or guarantors if you have them.

Next, confirm the amount owed down to the cent, and the date each invoice fell due. If you have applied interest or charged for anything since, keep a clear running total.

Prepare the file step by step

1. Pull every unpaid invoice for the debtor into one place.
2. Add copies of your terms of trade or the agreement they accepted.
3. Collect any purchase orders, signed dockets or proof of delivery.
4. Gather the reminder emails, letters or texts you have already sent.
5. Note any payments received and subtract them from the balance.
6. Write a short timeline: when the work was done, when you invoiced, and when you chased.

This file becomes the backbone of the referral and answers most questions before they are asked.

Check for weak spots

Before you refer, look for anything a debtor might raise to delay payment. Common examples include a disputed quantity, a missing signature, or an invoice sent to the wrong entity. If you can resolve these now, do so. If you cannot, simply flag them in your referral so we know what to expect.

You can use the Merion tools to tally interest and the total owed, then refer with confidence at merion.com.au/refer-a-debt.