What it is
The payment and payout flow describes how money moves from the Debtor to the Client after a successful debt recovery. Two main pathways exist depending on local regulations and debtor behaviour:
Default flow: The Debtor pays the Collection Partner directly. The Collection Partner deducts the agreed success fee and any applicable additional fees and charges, then transfers the remaining balance to the Client.
Alternative flow: In some jurisdictions (or when the Debtor bypasses the Collection Partner), the Debtor pays the Client directly. The Collection Partner then invoices the Client for the success fee and any fees that would have been charged to the Debtor.
Why it matters
Understanding how funds flow helps all parties set correct expectations for timing, invoicing responsibilities, and fee deductions. The Standard Debt Collection Agreement (SDCA) governs these financial arrangements for pre-legal debt collection.
Default flow: Debtor pays the Collection Partner
The Client submits a case to Debitura, and an assigned Collection Partner contacts the Debtor.
The Collection Partner provides their local bank details. The Debtor pays into the Collection Partner's account.
Upon receiving funds, the Collection Partner deducts:
The agreed success fee (based on claim size, region, and age)
Any applicable late payment fees and interest
VAT where required
The Collection Partner disburses the remaining balance to the Client within 30 business days of recovery.
Alternative flow: Debtor pays the Client directly
In certain jurisdictions (such as India or Bangladesh) or when the Debtor bypasses the Collection Partner, the Client receives funds directly:
The Client receives the payment from the Debtor.
The Client must notify the Collection Partner in writing within three (3) days of receiving payment.
The Collection Partner issues an invoice to the Client for:
The success fee
Any fees that would have been charged to the Debtor (interest, late payment fees)
The Client must settle this invoice within ten (10) days of the invoice date.
If the invoice remains unpaid for more than 30 days past the due date, the Client incurs a 10% flat late payment fee on top of 12% annual interest on the overdue amount.
Installment payments
When the Debtor pays in instalments, each payment is distributed on a pro-rata basis between the Client and the Collection Partner. See installment plans for details on how these arrangements work and when Client approval is required.
Debitura's revenue share
Debitura itself never receives funds from Debtors or Clients. After the Collection Partner has been fully paid by the Client (or has retained funds from the Debtor payment), Debitura invoices the Collection Partner monthly for its revenue share. This revenue share is calculated on the Collection Partner's earnings from settled payouts.
Impact by actor
Client
Receives the recovered principal minus the success fee and any Debtor-borne fees retained by the Collection Partner.
Disbursement occurs within 30 business days of recovery when the Collection Partner receives payment.
If the Debtor pays the Client directly, the Client must notify the Collection Partner within three days and settle the invoice for fees owed.
Collection Partner
Receives payment from the Debtor (default flow) or invoices the Client (alternative flow).
Deducts the success fee, late payment fees, interest, and VAT before disbursing to the Client.
Pays Debitura's revenue share monthly after funds are secured.
Can view all payments and payouts in the Partner Balance ledger.
Debtor
Pays the Collection Partner directly (default) or the Client directly (alternative).
Bears any late payment fees and interest charges added to the principal amount.
Debitura
Does not receive or hold funds from Debtors or Clients.
Invoices Collection Partners monthly for its revenue share on settled payouts.
Provides the platform infrastructure to track cases, payments, and disbursements.
What to expect
Disbursement timing: Within 30 business days of the Collection Partner receiving payment from the Debtor.
Invoice due dates: When the Client receives a direct payment and owes fees to the Collection Partner, the invoice is due within 10 days.
Fee transparency: Success fees are defined in the SDCA and displayed when a case is submitted.
VAT treatment: VAT applies based on the Collection Partner's jurisdiction. See VAT and taxes for common patterns.
If anything in this article conflicts with the Standard Debt Collection Agreement (SDCA), the SDCA is the legally binding source of truth.
Related articles
Developer Docs: Developers integrating payment tracking via API can refer to Developer Docs: Payments and reconciliation (page not yet live).