Paying the bill directly from your loan: the payee details lenders need

When the deadline is a specific bill — a supplier’s COD order, an ATO debt, a lease bond, a repairer’s invoice — it often makes sense for the money to go straight there. One transfer instead of two. A creditor who can see the payment coming from a lender. A clear paper trail.

But paying direct only works if the payee details are right. This page covers what’s needed, and how to make sure the details are genuine.

When does paying direct help?

• Supplier deposits and COD orders — the supplier sees the payment and can release goods.
• ATO debts — funds land against the right account using the payment reference number.
• Settlement shortfalls — funds go through the settlement process with the solicitors.
• Lease security — the landlord or bank receives the bond or guarantee cash directly.
• Repairs and replacements — the repairer or equipment supplier is paid on completion or delivery.

It’s not always possible or necessary, but it’s worth asking about on the first call.

What details are needed?

Detail	Where to find it
Payee’s legal name	Invoice, notice or contract
Bank account (BSB and account number) or BPAY biller code	Invoice — then verified by phone
The exact amount	Invoice or statement; include fees and adjustments
Reference	Invoice number, customer number or ATO PRN
Due date and time	Invoice, notice or the payee’s confirmation
Remittance contact	Who to send proof of payment to

For ATO payments, the PRN is critical — each ATO account has its own. The ATO statement page explains how to find it.

How do you verify bank details?

This step matters more than any other on this page. Urgent payments are exactly what invoice scammers target — a convincing email arrives saying a supplier’s bank details have changed, and the money goes to a criminal’s account. Scamwatch describes these as business email compromise scams.

Before you give any payee details to a lender:

1. Phone the payee on a number you already have — from previous invoices, your records or their website — not from the email or invoice in front of you.
2. Read the BSB and account number back and have them confirm.
3. Treat any “our bank details have changed” message as suspicious until verified by phone.
4. Be wary of pressure. “Pay in the next hour or lose the order” is a classic scam tactic — and also, unfortunately, what genuine deadlines sound like. Verification takes five minutes.

What about paying a settlement?

If the loan is funding a property or business settlement, funds usually move through the solicitors and the settlement process rather than straight to the vendor. Make sure the lender’s solicitor and your solicitor or conveyancer are talking — see getting your solicitor ready.

What do you get as proof?

Ask for a remittance or payment confirmation once funds are released, and send it to the payee straight away. For ATO payments, keep the receipt — the ATO says payments can take up to four business days to show online, and the receipt is your evidence in the meantime.

Have the payee details ready? Send the 60-second enquiry or call 1300 752 188.

Can part of the loan go direct and part to you?

Often. A common pattern is paying the urgent creditor directly and sending the balance to the business account for related costs — for example, a supplier deposit paid direct, with freight and wages paid by the business. Mention it on the call so the split can be planned.

An illustrative direct payment

Illustrative example only. A printing business needs to pay $36k to a paper supplier before Thursday’s dispatch. The supplier’s latest invoice arrives from a slightly different email address with new bank details. The owner phones the supplier’s accounts team on the number from last year’s invoices — and learns the details haven’t changed; the email was fake. With the genuine details confirmed, the funds are paid directly to the supplier on Wednesday and the paper ships on time.

What if the creditor won’t accept payment from a lender?

It’s rare, but it happens — usually because a supplier’s systems match payments to customer names. Ask the creditor in advance how they’d like a third-party payment referenced. Usually quoting your customer number and invoice number is enough. If they insist on payment from your own account, the funds can be paid to you first and transferred straight on — it adds a step, so allow for it in the timing.

How do you keep a clean paper trail?

Direct payments are only as good as the records behind them. For each one, keep:

• the invoice or notice the payment relates to
• your note of the phone call verifying the bank details — who you spoke to and when
• the lender’s payment confirmation or remittance
• the creditor’s acknowledgement that the money arrived

This matters most for tax debts and settlements, where you may need to prove the payment was made on time. It also makes reconciling your books far simpler afterwards, because each loan drawdown can be matched to the bill it paid.

Get the payee details right, then ring

Paying the creditor directly can make a tight deadline simpler and safer. Asking what’s possible doesn’t involve a credit check, your enquiry stays with one team instead of being passed to a series of lenders, and a real person calls you back.

Please include the exact amount and payee on the enquiry form — accurate details mean funds can be arranged to go exactly where they’re needed. Or ring 1300 752 188.