Rein guides were very common on horse tack ,back to Roman times even.
A fly terret was just a fancier type but if I'm right , were used on collars as accessories rather than the real rein guides (rein guides also being positioned elsewhere besides collars) and standard collar guides which they were mounted near..(fly terrets being on collars between outer collar rein guides for example.)
A working team of draft horses for example being slow movers usually could use something to distinguish them/bling them out a little ,and hey if it was thought to reduce flies annoying your horses ,all the better.
Kinda like crotal bells being accessories.
If you had the means ,you could deck your team out fancy as you like.