How it works
From the moment you refer an account to the moment it's resolved — here's what happens.
Recovering a commercial debt should not require you to become a debt recovery expert. Merion handles the process end to end — you refer the account, we do the work, and you receive the outcome. Here is what that looks like in practice.
- 01
You refer the account
Start online, by email, or by uploading a batch of accounts through our secure portal — whichever suits your workflow. To open an account you will need the debtor's full legal name and contact details, a copy of the invoice or account statement, and any supporting documents (contracts, purchase orders, signed delivery receipts). For company debtors, the registered ACN is helpful. Sole traders and incorporated businesses can both be referred. The referral takes most clients under five minutes.
- 02
We verify and assess
Once we receive your referral, our team verifies the debt details against the documentation you have provided. We confirm the debtor entity on the ASIC register, check for any known issues (deregistration, administration, or insolvency), and run an internal scoring check to assess recoverability. The account is then assigned to a specialist collector with the right experience for that debtor type and amount. You receive a confirmation once the account is active — usually within one business day.
- 03
Initial contact and demand
We issue a formal written demand to the debtor — by post and, where available, by email — setting out the amount owed, the creditor's name, a breakdown of the debt, and a clear deadline for payment or contact. The letter is professional in tone and compliant with the ACCC/ASIC Debt Collection Guideline. It puts the debtor on notice that the account has been referred and invites them to contact us to discuss payment. Response rates to first demand are high — the majority of accounts that will resolve without escalation do so at this stage.
- 04
Negotiation and follow-up
If the debtor does not respond to the initial demand, we begin structured follow-up by phone, letter, and where appropriate, email and text. Every contact is logged — the date, method, who spoke to whom, and what was said or agreed. If the debtor engages, we negotiate on your behalf — whether that means full payment, a structured instalment arrangement, or a commercially sensible settlement. You are kept informed of any material development, and any settlement offer outside your pre-authorised range is referred to you for approval before we accept it.
- 05
Escalation if needed
Where direct recovery is not producing results, we issue a pre-legal notice making clear that the matter will be referred for legal proceedings unless payment is received. At this point we consult you: you decide whether to authorise legal escalation, extend time, or write off the account. If you authorise escalation, we refer the matter to a legal practitioner — either your preferred firm or one from our panel — who will advise on the most appropriate proceedings (Magistrates Court, District Court, or for company debtors, a statutory demand). We coordinate the handover and remain your point of contact throughout.
- 06
Resolution
Once payment is received, funds are held in trust and remitted to your nominated bank account promptly — typically within two business days. Our commission is deducted from the recovered amount; you receive a net payment together with a written summary of the account outcome, a full payment receipt, and a record of all activity on the file. If the matter settled for less than the full amount, we will explain why and confirm the basis for the settlement. Accounts that cannot be resolved after all reasonable steps are reported to you with a written closure summary.
What you can expect when you work with Merion
You only pay when we collect.
Merion works on a commission-only basis. There are no upfront fees, no monthly retainers, and no charge if we do not recover the debt. Our commission is deducted from the recovered amount — so our interests are perfectly aligned with yours.
- Commission deducted from recovered funds — nothing out of pocket
- Commission rate agreed upfront — no surprises on the statement
- Pre-legal and legal costs disclosed before any escalation
- Net payment remitted to you with a full breakdown
Who does what
A clear division of responsibility makes the process smooth for everyone.
Getting started takes less than five minutes
Open a client account online or call us during business hours. Once your account is open, you can refer accounts immediately — by online form, email, or bulk upload. There is no minimum volume and no lock-in period.
Related resources
Ready to refer your first account?
Commission-only — no recovery, no fee. The first conversation is obligation-free.