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Late payments are a common challenge for small businesses, with over half of invoices being paid late. This can disrupt cash flow and create operational issues. Manual debt collection methods are time-consuming, error-prone, and can strain customer relationships. Outsourcing to agencies often results in high fees, taking a significant cut from recovered funds.
Debt collection software provides a more efficient and cost-effective solution. These tools automate reminders, offer self-service payment portals, and use AI to identify risky accounts. Businesses can recover 100% of owed funds for a predictable monthly fee. Studies show automated tools can reduce Days Sales Outstanding (DSO) by up to 75%, improving cash flow dramatically.
Here are five software options tailored for small businesses:
Each platform offers unique features like compliance support, automation, and integrations to streamline the debt recovery process. Below is a quick comparison to help you choose the right fit for your business.
Debt Collection Software Comparison: Features, Pricing & Best Use Cases
| Software | Starting Price | Key Features | Best For |
|---|---|---|---|
| Collect! | $149/month | Automation, compliance tools, integrations | Small businesses with large volumes |
| Debtor Daddy | $29/month | Custom reminders, debtor analysis | Small teams with limited budgets |
| CasetrackerLaw | $399/month | Legal compliance, advanced reporting | Law firms, legal collections |
| Chaser | $180/month | AI payment predictions, multi-channel reminders | Maintaining client relationships |
| Simplicity | $399/month | Mobile access, skip tracing | Agencies needing scalability |
Choosing the right software depends on your business size, budget, and specific debt recovery needs.
Collect! is a debt recovery platform tailored for small businesses, with a history dating back to 1993. It offers flexibility in deployment, available as both a cloud-based subscription and a premise-based license. For small businesses, the Entrepreneur edition supports up to 10,000 debtor accounts and allows 10 concurrent users for $249.00 per month. Alternatively, the Xpress edition supports up to 2,500 accounts for $149.00 per month.
Collect! simplifies debt recovery with automation tools like Contact Plans, which handle tasks such as scheduling letters, calls, file routing, and note creation. These plans can be triggered automatically based on account conditions or initiated manually. The Work in Progress (WIP) lists help organize daily tasks by showing accounts during legally permissible calling hours, adjusted for time zones.
The platform also supports batch processing and includes a Task Scheduler for automating after-hours tasks like data imports and payment reconciliations. Automated payment posting further streamlines operations by triggering follow-ups upon receipt. For calling operations, the system uses an auto dialer with TAPI integration, enabling operators to move seamlessly between accounts.
With Version 13, Collect! was specifically designed to align with CFPB Regulation F. Its Contact Control Engine allows users to set and enforce rules for consumer contact frequency, ensuring compliance. Additionally, Workflow Analysis Reports provide real-time compliance monitoring.
As Paul M., Co-Owner, shared, "We want to recognize the effort made by Collect! in understanding Reg F and creating their new major version so that it was virtually usable for Reg F from the outset."
The cloud-based solution is hosted on Amazon Web Services and adheres to key standards like SOC II, HIPAA, PCI, and SSAE 18 (SOC 1), offering a secure environment for operations.
Collect! integrates seamlessly with other tools to streamline workflows. It supports QuickBooks (both Online and Premise versions) for automated data transfers and offers a REST API with full CRUD functionality, making it easy to connect with CRMs and billing systems. For credit bureau reporting, it uses the Metro2 format and integrates with Palinode's Sonnet to handle e-OSCAR complaints.
Communication tools are also well-supported. The platform integrates with Solutions by Text and Vonage for SMS communications and works with third-party dialers like TCN Broadcasting. These integrations ensure smooth operations for small businesses managing collections.
Collect!’s strong automation tools, compliance support, and integration options make it a standout choice for small businesses as we continue exploring other solutions.
Debtor Daddy takes a different approach to managing overdue invoices, focusing on streamlined identification and customized reminders. It automatically detects overdue invoices from your accounting software and compiles them into a "Hit List" for easy review. The platform integrates with Xero, QuickBooks Online, and MYOB AccountRight Live, using a read-only connection to ensure your original accounting data remains untouched.
Debtor Daddy simplifies collections by automating invoice reminders through email and SMS. You can set different reminder schedules depending on whether a customer frequently pays late or is usually punctual. To keep you informed, a summary email is sent each morning at 8 a.m., outlining the day's scheduled reminders.
What sets this tool apart is its ability to adjust the tone of reminders - options range from "friendly" to "no-nonsense" - to suit the behavior of each debtor. If reminders don’t work, the system can escalate the situation with trained phone calls or even a one-click referral to a collection agency.
As Shamal, Credit Manager at SoftwareSuggest, shared: "Debtor Daddy has significantly changed the way we do business! I am now in a positive cash-flow position and no longer have to stress about settling bills at the end of the month".
Beyond its seamless integration with accounting software, Debtor Daddy enhances communication by combining email, SMS, and human-led phone calls. Its dashboard provides real-time insights, including debtor days metrics, overdue invoice ratios, and detailed audit trails to document all interactions. The platform organizes its dashboard into three main sections: Hit List (overdue invoices), Scheduled (upcoming reminders), and Collectors (adjustable intensity settings for reminders). This structure is designed to help small businesses improve cash flow efficiently.
Debtor Daddy offers a 14-day free trial and three subscription plans:
With a 5/5 rating on SoftwareSuggest, users have highlighted its ability to ease the stress of collections and improve cash flow.
CasetrackerLaw provides a cloud-based debt recovery platform tailored for law firms, collection agencies, and small businesses. It combines automation with advanced security measures to streamline debt collection processes. The platform stands out for its SOC2 and PCI compliance, which safeguards sensitive debtor information using encryption-at-rest, top-tier firewalls, and regular penetration tests. With a 4.8/5 rating from 29 user reviews and 100% positive sentiment, users particularly appreciate its reliable customer support and cloud-based functionality.
CasetrackerLaw simplifies routine collection tasks through automation. Custom letter and PDF templates automatically populate with claim details, while task scheduling ensures consistent follow-ups with debtors via calls and callbacks. The platform also offers over 75 customizable reports, enabling businesses to dive into their debt recovery data.
As David from Marketing and Advertising shared: "What I value most about this CRM is the reminder system. The main dashboard simplifies organizing our prospecting, ensuring timely calls".
Additional automated features include commission management and transaction tracking, which help streamline daily workflows. While some users note that the initial setup can be time-intensive, free training sessions and 24/7 access to training videos are available to ease the learning curve. These tools work seamlessly alongside the platform’s compliance-focused design.
The platform offers granular access controls, allowing administrators to manage permissions for teams, clients, and debtors. This ensures sensitive data remains secure while maintaining transparency. Automated documentation features further enhance compliance by keeping legal records consistent and accurate.
CasetrackerLaw provides four pricing tiers, each with a one-time setup fee and a monthly subscription:
Each plan is designed to cater to businesses of varying sizes and needs, making it a flexible option for debt recovery operations.
Chaser is another cloud-based accounts receivable platform designed with small businesses in mind. Like other solutions, it focuses on automating payment reminders and reducing overdue debts. With over 10,000 users, Chaser has earned a 4.9/5 rating on Capterra (400+ reviews) and 4.4/5 on G2. Its personalized, multi-channel reminders - delivered via email, SMS, automated calls, and even postal letters - help businesses maintain a professional tone while staying on top of collections.
Chaser stands out for its advanced automation tools aimed at simplifying debt recovery. Beyond the standard reminders, it includes an AI late payment predictor that flags invoices likely to go unpaid, enabling businesses to focus their efforts on high-risk accounts. Users can customize reminder schedules - such as seven days before, one day after, and every seven days until payment is made. The platform can even add late fees or offer early payment discounts to encourage prompt payments.
In June 2024, Love Brands shared their experience with Chaser, noting they saved 60 hours each month on manual collection tasks. This freed up their finance team to tackle more strategic priorities. Additionally, the software reportedly reduces Days Sales Outstanding (DSO) by up to 75%, with most businesses cutting their DSO by 15 to 33 days. Automated reminders have proven effective, with 30% of invoices getting paid within seven days of the first notice.
"This is such a good add-on. I truly believe that Chaser emails are sent with a little bit of magic... it has definitely improved credit control, and the 'thank you' email when clients have paid is a lovely touch", said Sharon Pocock, MD & Principal Accountant at Kinder Pocock.
Chaser aligns with key regulatory standards to ensure its debt recovery processes remain ethical and secure. For U.S. users, the platform adheres to the Fair Debt Collection Practices Act (FDCPA), maintaining professional and non-harassing communication. It also complies with GDPR, protecting sensitive information through data encryption and transparent processes. The platform logs all interactions - whether by email, SMS, phone, or letter - creating a comprehensive audit trail for regulatory purposes.
In 2024, Huttie Group adopted Chaser to improve their credit control efforts. Before using the platform, their team spent two to three days each month on manual collections with limited success. After switching to Chaser, they recovered $19,000 in old debts previously written off.
Chaser’s integrations make it a versatile tool for businesses using various accounting and CRM systems. It offers two-way API integrations with popular accounting platforms like Xero, QuickBooks Online, and Sage products (including Sage Intacct, Sage Accounting, Sage 50 UK, and Sage 200). The software syncs hourly or on-demand, ensuring accurate data and real-time reconciliation, so paid invoices are automatically removed from reminders.
For CRM users, Chaser connects with platforms like HubSpot, Salesforce, Zoho, and Pipedrive, logging all communications automatically. Businesses using unsupported systems can leverage the OpenAPI or the CSV "Chase Import" tool for easy data transfers.
In January 2026, Ravi, a Mid-Market Finance Director, shared that his company reduced debtor days from 60 to just 24 within a few months of implementing Chaser, achieving a 60% decrease in DSO.
Chaser’s pricing starts at $180 per month and goes up to $900, depending on the plan. It also offers a 10-day risk-free trial with no credit card required.
Simplicity stands out as a cloud-based debt collection platform designed to help agencies and small businesses enhance their recovery efforts. Known for its user-friendly interface and responsive customer support, Simplicity has received strong feedback from users. Its web-based design ensures compatibility with both Android and iOS devices, making it accessible for remote teams or those working in the field.
Simplicity streamlines debt collection with automation tools that handle repetitive tasks, saving time and effort. The bulk account manager allows users to update multiple accounts simultaneously, adjust statuses, and set up payment plans in one go. Intelligent workflows automatically assign tasks or escalate overdue accounts based on pre-set rules. For example, if an account remains unpaid for a specified number of days, it can be escalated without manual intervention.
The platform also automates communication, enabling email, SMS, and electronic notices to be sent to debtors at the right time. It even generates documents automatically, reducing paperwork. Self-service portals give debtors the ability to make payments via credit card or ACH, while clients can access account updates and create custom reports. Additionally, Simplicity integrates with LocateSmarter for automated skip tracing, helping locate hard-to-reach debtors efficiently.
"I insisted they switch to Simplicity because it is by far the easiest software to train employees to use, has the most features, and had a simple subscription model", shared Graeme, a user from a collections law firm.
Simplicity is designed to meet compliance standards like the Fair Debt Collection Practices Act (FDCPA) and GDPR, which helps businesses adhere to both U.S. and international regulations. Its cloud-based architecture safeguards sensitive financial and debtor data, while the consumer portal minimizes risk by eliminating the need for manual handling of payment information. The platform integrates with PDCflow for secure eSignatures and uses trusted skip tracing providers like LocateSmarter to ensure accurate data. Agencies can also create detailed recovery reports for audits or client reviews using the custom report builder.
"My favorite feature is the reports, that makes it easy for me to provide my clients with all the recovery data. Thank you Simplicity, for simplifying my business operations", said Rene, a Simplicity user.
Simplicity seamlessly integrates with QuickBooks for accounting management, ensuring smooth data synchronization between platforms. Its case import and export tools make transferring data between systems straightforward. The platform also collaborates with various partners to enhance functionality. For phone systems and dialers, it works with TCN, Vaspian, VoIP Essential, Arbeit, USTNINC, and Blue Rock. For letter fulfillment, it partners with Focus1, Renkim Corporation, and CompuMail. These integrations eliminate manual data entry and ensure all collection activities stay in sync.
"I've been with SimplicityCollect since 2013 and I've never had a problem they couldn't solve within minutes. It is the best decision I've made for my business", said Alan, a business owner.
Simplicity offers four subscription tiers tailored to different user needs and account volumes:
If additional users are needed, they can be added to any plan for $99 per month per user.
Here’s a quick breakdown of the strengths and trade-offs for each debt collection software option. Your choice will depend on whether your focus is on compliance, relationship management, or cost considerations.
Collect! stands out for its scalability and deployment options, offering both cloud and on-premise setups. Its automated workflow audits help ensure Regulation F compliance, making it a strong option for agencies handling sensitive legal cases. However, its pricing model - available only upon request - can complicate budgeting for smaller businesses. Corey B., President, shared:
"Collect! is far superior in its ability to be customized by the end user".
While customization options are extensive, they may require more technical expertise, which could be a challenge for less tech-savvy teams.
Chaser caters to businesses focused on maintaining strong client relationships. Its AI-powered email generator and human-centric automation help preserve B2B connections. Users have reported notable results, like this from Ravi, a Mid-Market Finance Director:
"Decreased DSO by 60%... reducing our debtor days from 60 to approx 24 in a matter of months".
However, its moderate emphasis on compliance might not meet the needs of businesses requiring rigorous legal enforcement.
CasetrackerLaw is tailored for legal collections and case management, making it a great fit for law firms or businesses involved in litigation. Its specialized focus excels in handling legal workflows but may fall short in offering broader automation features.
Simplicity provides tiered subscription plans to suit various needs:
Additional users can be added for $99/month each. Its cloud-based platform ensures mobile accessibility, and it offers moderate compliance support with FDCPA and GDPR features. However, it may not provide the advanced legal safeguards needed for high-risk collections.
When evaluating software, match your choice to your specific debt recovery goals. Whether you need relationship-focused automation for active clients or robust legal tools for late-stage collections, ensure the platform enforces "Quiet Times" and contact frequency limits to comply with Regulation F and FDCPA guidelines. Additionally, look for systems with native write-back functionality to automatically update payments in your accounting software.
Choosing the right debt collection software depends on your business's specific needs. For startups or smaller agencies with limited technical know-how, Collect! stands out with its easy onboarding process. On the other hand, if you're working within a tight budget, Simplicity offers a basic plan at just $79 per month, with no long-term commitment, making it an affordable option. These solutions can help lay the groundwork for smoother and more cost-effective debt recovery.
Integration is another key factor. Ensuring your software integrates seamlessly with existing systems helps eliminate manual data entry and reduces the risk of errors. Automation, in particular, offers powerful advantages. Businesses using accounts receivable software are three times more likely to receive payments before the due date, and automation can reduce Days Sales Outstanding (DSO) by over 40%. Considering that mid-sized companies often spend around 14 hours each week chasing overdue invoices, the right software can free up valuable time for activities that drive revenue.
Don't overlook free trials. Many providers, including Collect!, Chaser, and Simplicity, offer trial periods, allowing you to test features and ensure the software fits smoothly into your workflow.
The best debt collection software strikes a balance between automation and regulatory compliance. Look for features like self-service payment portals, which enable customers to pay using their preferred methods. Automation not only cuts collection costs by up to 65% but also supports stronger customer relationships. By adopting the right tool, you can streamline your operations and safeguard your business's financial health.
Yes, small businesses can legally use debt collection software, provided it complies with U.S. laws and regulations related to debt collection. It's crucial to ensure the software aligns with the Fair Debt Collection Practices Act (FDCPA) to avoid any potential legal complications.
When choosing debt collection software for small businesses, prioritize automation, compliance management, and system integration.
Once you've got these basics covered, explore extras like analytics or multi-channel communication tools to further improve your operations.
Integrating debt collection software with QuickBooks or Xero is often a simple process. Many tools come with API-based or built-in integrations that require only a few steps to set up. For instance, some platforms let you handle overdue invoices right within QuickBooks, streamlining your workflow. Additionally, most providers offer dedicated support to guide you through the process, ensuring your accounting system connects effortlessly with the software.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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