Having customers who drag their feet on payments can be an accounting nightmare. First of all, your small business needs that revenue to pay expenses. And second, chasing after late-paying clients can be time-consuming or expensive.

Certainly, there are collection agencies you can work with to help with the collection process, but you’ll have to give up 25-50% of the amount due to that collection agency.

A better solution to collect on what’s owed to you is to use debt collection software. It can take the headache out of the process and automate much of the accounts receivable functions you need to get paid in a timely manner.

The 6 Best Debt Collection Software Programs for Small Businesses

In this article, we will look at what we have determined to be the best payment collection software programs out there.

• Experian Debt Collection Software
• SimplicityCollect
• Anytime Collect
• ACE
• Cogent
• Beyond ARM

What Is Debt Collection Software?

Debt collection software takes the place of collection agencies in managing payments from customers on past-due invoices. More than simply accounts receivable software, it can actually send payment reminders, offer payment terms to customers, and reduce the number of overdue invoices you have. Typically, debt collection software will integrate with accounting processes and solutions you already have in place.

Common Features of Debt Collection Software

While each debt collection software program may offer slightly different features for accounts receivable and collecting on bad debts, there are a few general features you can expect.

Many offer online payment platforms that can process debit or credit payments directly from clients so you get paid faster. You may also be able to negotiate payment plans for late-paying clients to help with debt management.

Most debt collection systems can automate many of the accounting processes related to collecting payments, such as sending payment reminders or processing bulk cases. You may be able to integrate your debt collection software with other financial software you use for accounts receivable management, such as QuickBooks.

And should you be unable to collect on payment through normal means, you may also be able to pass on your data to collection agents and credit bureaus to escalate the issue.

Debt Collection Software vs. Collection Agencies

There are third-party collectors you can work with who will act on your behalf to manage your accounts receivable to collect from your debtors. Of course, you pay a collection agency for these services.

Some collection agencies work with B2B companies, collecting on past-due invoices from your business clients, while others focus on B2C companies to collect from consumers.

If you value your time and have the money, you can hire someone to oversee your debt collection management. On the other hand, if you have a small budget and have the time and inclination, you can DIY your debt collection with software like that below.

The 6 Best Collection Software for Small Businesses Reviewed

If you want to own the management of your debt collection solutions, these software programs provide plenty of value for accounts receivable and payment processing.

Experian Debt Collection Software

Experian, known for their paid and free business credit scores, also offers a debt collection management system for businesses. With it, you can find debtors, prioritize debt, and collect on unpaid accounts.

Plans Offered

Experian does not list plan options for its service; contact a debt collection specialist to find out your options.

Features & Benefits

In addition to debt collection management software, Experian offers other services, including those to help you:

• Locate debtors
• Generate collection reports
• Assess credit risk
• Automate debt management

Simplicity Collect

Simplicity Collect offers scalable debt collection services for all sized businesses. The software is cloud-based and secure, and the company will import your data at no cost.

Plans Offered

Simplicity Collect offers three plans. The first, SimplicityBasic, is $79 a month and has no contract. It includes one user, 100 accounts, and one client. SimplicityPro is $149 a month with no contract, and allows for up to three users, includes unlimited accounts and clients, and offers importing assistance. It also allows you to accept credit card payments from debtors and provides initial training. 

SimplicityEnterprise, at $1,188 a month, has an annual contract and no additional cost per user. You get unlimited users, accounts, and clients, as well as everything in the other plans plus QuickBooks integration and the ability to host the software on your own servers.

Features & Benefits

Simplicity Collect is mobile-friendly, cloud-based software that offers:

• Bulk case management
• Automatically generated documents 
• Quickbooks integration 

Anytime Collect

Anytime Collect focuses on automating the collection process so you get paid faster by your customers.

Plans Offered

Anytime Collect offers three plans. The Essentials plan includes online statements and payments, accounting and email sync, document management, and dashboard and reporting. The Standard plan includes all of the above plus workload management, goal management, dispute management, custom data sync, and more.

The Pro plan includes all of the above plus multi-channel sequencing, CRM integration, multi-currency, advanced document management, and one year of historical data. Call the company for pricing.

Features & Benefits

Anytime Collect is a 100% digital workspace, so you can manage your collections from anywhere. Other features include:

• Automated personal customer communication
• Self-service for customers to access invoices and make payments
• Collections activity management 
• Integration with accounting and ERP software like Xero, SAP, and Sage

InterProse ACE

InterProse ACE stands out with its virtual agent, who can take on tasks like processing settlements and payments and setting up payment schedules, all at a fraction of what you would pay an agent.

Plans Offered

ACE offers three plans with diverse services. The Account Management plan helps you reclassify debt and assign it to third-party debt collection agencies, as well as set parameters for account forwarding and retraction. You also get access to the virtual agent collector. 

The Virtual Agent Collector plan allows you to accept payments through a variety of payment gateways, create payment plans based on guidelines you define, and create custom settlement offerings. The InterProse ACE plan offers account bundling, advanced process automation, credit reporting, third party integrations, automated communications, and more.

Features & Benefits

ACE is open software, so you can connect to third-party vendors you’re already working with. It offers military-grade security so your sensitive data is protected. Other features include:

• Customer information management
• Account statusing
• Payment scheduling and processing

Cogent

Cogent focuses on the legal market, providing tools to help them control, manage, govern, and automate collections and case management.

Plans Offered

Cogent offers a variety of debt collection services; contact the company for a free demo.

Features & Benefits

Many of the features Cogent offers are particular to the legal industry, and include:

• Manage assignment of cases to a state’s court dockets
• Integrate credit report data from Equifax, Experian, and TransUnion
• Receive alert when you open a claim that has a potential violation

Beyond ARM

Beyond ARM provides a variety of accounts receivable and collection management services to help you reduce days in collection and keep cash flowing.

Plans Offered

Contact the company for a free demo of its debt collection software.

Features & Benefits

Beyond ARM takes the headache out of the collections process with features like:

• Accounts receivable management
• Dialing solutions
• Credit card and ACH processing
• Risk and credit scoring

Nav’s Final Word: Debt Collection Software for Small Business

As a small business owner, you don’t want to have to think about accounting too much, but late-paying customers can quickly eat up your time. Having receivables management solutions that let you collect on overdue invoices, send payment reminders, and set up payment plans with minimal effort can be a step in the right direction for debt recovery.