---
title: "Credit control software for startups: what to set up at each stage"
description: "Credit control software for startups: terms, a reminder cadence, a late fee clause and statements, and which tool fits each stage from Xero to scale-up."
url: https://www.paidnice.com/blog/credit-control-software-for-startups
---

# Credit control software for startups: what to set up at each stage

Written by

Denym Bird
Personally tested

Co-founder & CEO of Paidnice

Denym compared Chaser, Satago, and Upflow pricing against four month-one needs, mapping each startup stage to the point where Xero's reminders run out.

Reviewed by Ashley Schroder

Co-founder of Paidnice

Updated Nov 6, 2026 · 7 min

## Summary

Credit control software for startups should be fixed price, connected to the ledger and running from the first invoice. Paidnice suits startups on Xero or QuickBooks Online that want reminders, statements and optional late fees in one tool, from £49 a month. Xero's built-in reminders cover the first few overdue invoices. Upflow is the scale-up option.

- **Paidnice:** Best for startups that want reminders and late fees in one tool, from £49 a month for 150 invoices and 2 users, priced by invoice volume, not revenue.
- **Xero reminders:** Best for the first few overdue invoices a month, included with a Xero subscription: up to five email stages on one schedule for the whole organisation.
- **Chaser:** Best for established firms that want bureau credit checks, letters and automated calls alongside chasing; priced by revenue band, Compact £199 a month under £4m, Core from £599 above that.
- **Satago:** Best for Sage 50 or Xero businesses that want bureau credit scores and invoice finance alongside chasing, from £45 a month (£25 inside Sage 50).
- **Upflow:** Best for scale-ups with a finance team and a high invoice count, last published at $440 a month for Grow and $880 for Scale, current prices hidden and must be requested, with plans segmented by gross invoice value.

## Do startups need credit control software?

**A startup needs credit control software once chasing overdue invoices takes founder time every week, and a reminder cadence costs less to run from the first invoice than to add after the first bad debt.** New to the term? Start with [what is credit control](https://www.paidnice.com/dictionary/credit-control).

Late payment costs the UK economy an estimated £11 billion a year and contributes to around 38 business closures a day, according to the [UK government's late payment reform announcement](https://www.gov.uk/government/news/largest-crackdown-on-late-payments-in-over-25-years-as-landmark-bill-enters-parliament).

UK law gives the supplier the right to charge. Under the [Late Payment of Commercial Debts (Interest) Act 1998](https://www.gov.uk/late-commercial-payments-interest-debt-recovery), a UK business can charge 8% above the Bank of England base rate on an overdue B2B invoice, plus a fixed sum of £40, £70 or £100 per invoice, even when the contract is silent on interest. Software turns that right into a charge on the ledger.

Fees are optional. Reminders and statements on their own are a complete use of the software, and the fee policy is a setting you can switch on later.

Free: Payment reminder email templatesCopy the reminder emails for before, on and after the due date.

## When does a startup outgrow Xero's built-in reminders?

**A startup outgrows Xero's reminders when it needs more than one schedule, a channel other than email, an automatic statement run, or a late fee on the ledger.**

Xero's invoice reminders run up to five email stages on one schedule for the whole organisation, each a set number of days before or after the due date. Three are on by default at 7, 14 and 21 days overdue, per [Xero Central](https://central.xero.com/s/article/Set-up-invoice-reminders). Reminders can be switched off per contact or invoice, but there is one ladder for every customer.

After stage five there is no stage six, and the automatic reminders are email only. Statements are sent manually.

Xero has no native late fee or interest feature. The request to [add interest to late invoices](https://productideas.xero.com/forums/967115-invoices-quotes/suggestions/44960305-sales-invoices-add-interest-to-late-invoices-in) was posted on 29 March 2012, holds 1,114 votes, and Xero's latest reply on 7 July 2025 states there are no committed plans.

See [Xero reminders vs a credit control app](https://www.paidnice.com/blog/xero-reminders-vs-credit-control-app) for the trade-offs, and [credit control software vs manual process](https://www.paidnice.com/blog/credit-control-software-vs-excel) if the overdue list still lives in a sheet.

## What should a startup set up in month one?

**Set four things before the first invoice goes out: written payment terms, a reminder cadence, a late-fee clause with a grace period, and a monthly statement run.**

1. **Payment terms in writing.** A due date, the interest rate, the fixed sum, and a signature before work starts. The UK statutory rate is 8% above base, 11.75% for debts overdue by 31 December 2026, from the 3.75% base rate on 30 June (the base rate rose to 4% on 5 November 2026) ([Bank of England](https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate)). The base rate in force on 30 June or 31 December sets the rate for the next six months under [SI 2002/1675](https://www.legislation.gov.uk/uksi/2002/1675). Other countries: [how much can I charge for late fees](https://www.paidnice.com/blog/how-much-can-i-charge-for-late-fees).
2. **A reminder cadence.** One email before the due date, then days 1, 7 and 14 after it, an SMS on the day 14 step, and a task to a named person at day 28. Run it from the first invoice, not from the first bad debt.
3. **A late-fee clause with a grace period.** Set the days overdue before a fee applies (seven in the setup above) and name the fee in the reminder before it lands. Post the fee to the ledger as an invoice so it enters the customer's payables and their next payment run. Waive it deliberately, with the reason noted, for a customer you want to keep.
4. **A monthly statement run.** One fixed day a month, open items only, overdue customers first. The statement is where accrued interest shows as a visible line on the balance the customer owes.

💡 Paidnice insight

Set the late-fee policy before you need it and run it in Draft for the first month. Paidnice raises each fee in Xero or QuickBooks Online as a Draft or an Approved invoice, your choice, so a person reviews the first fees before a customer sees one. Switching to Approved later is one setting, with nothing rebuilt.

## Which credit control software fits each stage?

**Paidnice fits from the first invoice on a fixed monthly price, Xero's reminders cover the first few overdue invoices, and a quote-priced platform fits a scale-up with a finance team.**

| Tool | Stage fit | Best for | Price from | Ledger |
| --- | --- | --- | --- | --- |
| Paidnice | First invoice to $50m a year or 50,000 invoices a year | Reminders, SMS, statements and late fees on the ledger in one tool; payment plans start on Pro | £49 a month (150 invoices, 2 users); first 20 actions free, no card | Xero, QuickBooks Online |
| Xero reminders | First invoices | A few overdue invoices a month, one schedule, email only | Included with a Xero subscription | Xero |
| Chaser | Compact under £4m, Core from £4m, Complete to £100m | Email, SMS, letters and automated calls, with credit checks and a collection agency route | £199 a month | Xero, QuickBooks Online, Sage, NetSuite and others |
| Satago | Small UK businesses on Sage 50 or Xero | Bureau credit scores and invoice finance alongside chasing; 100 email reminders a month on the entry plan | From £45 a month (£25 inside Sage 50) | Xero, Sage, QuickBooks, FreeAgent, KashFlow |
| Upflow | Scale-up with a finance team | Multi-step workflows across email, SMS and letter, unlimited seats; late fees only through the ERP | Last published $440 a month for Grow and $880 for Scale; current prices hidden and must be requested | Xero, QuickBooks, NetSuite, Sage Intacct |

**Paidnice: accounts receivable automation for Xero and QuickBooks Online, best for startups that want reminders and late fees in one tool, from £49 a month.** Essentials covers 150 invoices, 600 emails and 2 users, with SMS and escalation included, priced by invoice volume, not revenue.

It picks up invoices already open when the ledger connects, and runs a late fee per invoice and interest on the statement balance with a Bank of England base-rate toggle. Paidnice customers see half as many late invoices in the first 30 days. Plans: [pricing page](https://www.paidnice.com/pricing).

**Xero reminders: the built-in baseline, best for the first few overdue invoices a month, included with the subscription.** They are enough until you want a second schedule, a second channel, or a fee on the ledger.

**Chaser: incorporated in 2013 (Companies House), best for established firms that want bureau credit checks, letters and automated calls alongside chasing, from £199 a month.** Chaser prices by revenue band: Compact is £199 a month for revenue under £4m, and above £4m a team is on Core from £599. Chaser offers a free trial (10 days on the Xero listing) or a conversation with an expert; no minimum term, 10% off yearly billing. It has one set of late-fee rules across the account or for selected debtors, not tied to schedules, with no documented way to run different rules per group.

**Satago: UK credit control with credit risk data and invoice finance, best for Sage 50 or Xero businesses that want bureau credit scores, from £45 a month (£25 inside Sage 50).** The standalone Basic plan caps at 100 email reminders a month.

**Upflow: accounts receivable software for finance teams, best for scale-ups with a high invoice count, last published at $440 a month for Grow and $880 for Scale; current prices are hidden and must be requested from Upflow.** Plans are segmented by gross invoice value with unlimited seats. Late fees run through the ERP, not inside [Upflow](https://www.paidnice.com/upflow-alternative). At that stage, read [credit control software for finance teams](https://www.paidnice.com/blog/credit-control-software-finance-teams).

Wider field: [credit control software compared](https://www.paidnice.com/blog/credit-control-software-compared) and [credit control software for UK small businesses](https://www.paidnice.com/blog/credit-control-software-uk-small-businesses). Xero-only startups: [invoice chasing software for Xero](https://www.paidnice.com/blog/best-invoice-chasing-software-xero) and [credit control software for Xero](https://www.paidnice.com/blog/credit-control-software-xero). Category page: [the wider credit control field](https://www.paidnice.com/credit-control-software).

💡 Paidnice insight

Startups ask us about credit checks more often than they end up using them. Every plan runs native credit checks from each customer's payment behavior; Creditsafe bureau checks through the API come with the Custom plan. Most startups already know their short customer list. The gap is the cadence.

## Common questions

**Yes to late fees on a first invoice, no to free credit control software beyond Xero's own reminders, and reminders before fees when customers are new to you.**

**Can a startup charge late fees on its first invoices?** Yes. In the UK the statutory interest and fixed sum apply to any B2B invoice under the 1998 Act, whether or not the contract mentions them. The [statutory interest calculator](https://www.paidnice.com/uk/statutory-interest-calculator) shows the figure on a given invoice.

**Is there free credit control software for startups?** Xero's reminders and statements come with the subscription and are the free baseline. Paidnice is not free software: sign-up is free with no card, the first 20 actions cost nothing, and paid plans start at £49 a month. Trials: [credit control software free trials](https://www.paidnice.com/blog/credit-control-software-free-trial). For what paid tools charge across the market, see [credit control software pricing](https://www.paidnice.com/blog/credit-control-software-pricing).

**Should a startup use reminders only, or fees as well?** Start with reminders and statements if your customers are new to you. Add the fee policy once a customer stretches terms a second time. Both are settings in the same tool, so nothing is rebuilt when the fees go on. An agency comes later still: [credit control software vs debt collection agency](https://www.paidnice.com/blog/credit-control-software-vs-debt-collection-agency) covers when that step pays.

Read the transcript: Credit control software for startups: month-one setup

Around 38 UK businesses close every day waiting on invoices. A due date on its own does not get an invoice paid. A startup can fix that in its first month and Paidnice is the best tool for the job on Xero and QuickBooks Online.

The video has four chapters. First, does a startup need it? Second, when a startup outgrows Xero's own reminders.

Third, the four things to set up in month one. Fourth, the tools for each stage with Paidnice first as the best option. At the end, reminders only or fees as well.

A startup needs credit control software once chasing overdue invoices takes founder time every week and a reminder schedule is cheaper to set up now than to add later. The UK government puts late payment at 11 billion pounds a year and 38 closures a day. Under the Late Payment of Commercial Debts Act, you can charge 8% above base rate on an overdue business invoice plus a fixed sum per invoice.

Fees are optional. Reminders and statements alone are a complete use. A startup outgrows Xero's reminders when it needs more than one schedule, text messages as well as email, automatic statements, or a late fee posted to the ledger. Xero gives you up to five reminder emails on one schedule for every customer. It sends email only and you send statements manually.

Xero has no built-in late fee or interest feature. The request has sat on the Xero Ideas board since 2012 with no committed plans. Chapter three. Before the first invoice goes out, set up written terms, a reminder schedule, a late fee clause, and a monthly statement. Terms set the due date, the interest rate, and the fixed sum.

Signed before work starts. The statutory rate is 11.75%. Next, the reminder schedule.

One message before the due date, then a series after it. From email to text message to a task for a named person. When a customer replies with a payment date, the reminders pause.

Third, the late fee clause. Put the fee in your terms, give it a grace period, and mention it in the reminder before it is charged. Post it to the ledger as an invoice. Take a £2,000 invoice 30 days overdue.

The interest is £19.32. Add the £70 fixed sum, and the charge is £89.32. Keep fees in draft for the first month, then switch to approved.

If a customer is worth keeping, waive the fee and note the reason. The fee gives you leverage. Fourth, statements.

Send them on one fixed day a month. Open items only, overdue customers first with any interest as a line on the balance. Sent manually, they slip the month you are busy.

Automated, they go out regardless. Chapter four, the tools. Paidnice is the best option for a startup on Xero or QuickBooks Online because it runs reminders and late fees in one tool from the first invoice.

It runs reminder schedules by customer group, text messages, statements, and late fees on the ledger. It costs from £49 a month for 150 invoices. The price is set by how many invoices you send, not your revenue. Sign up is free with no card.

Xero's own reminders are free with your Xero subscription. Chaser adds credit checks and letters from £199 a month. Satago adds credit scores and invoice finance from £25 a month inside Sage 50 or £45 on its own.

Upflow is for a scale-up with a finance team, priced on request. With a handful of overdue invoices a month, Xero's reminders and a statement manually are enough. After your first hire, move to a fixed price tool that posts to your ledger with fees in draft until you trust them.

With a credit risk function or finance look at the platforms priced on revenue, reminders only or fees as well. If your customers are new to you, run reminders and statements first. Add fees once a customer stretches your terms It is the same tool, so nothing is Credit control for a startup comes down to written terms, a reminder schedule, a late fee clause, and a monthly statement run, all set before the first invoice. The full stage-by-stage guide is on the Paidnice blog.

## Paidnice features in this article

- [**Email and SMS reminders** Sends reminders by email and SMS on your schedule, each with a link to pay.](https://www.paidnice.com/email-sms-reminders)
- [**Customer statements** Sends branded customer statements on your schedule, with one button to pay.](https://www.paidnice.com/automated-customer-statements)
- [**Late fees and interest** Adds late fees and interest to overdue invoices when you turn them on.](https://www.paidnice.com/late-fees)

## About the editorial team

Written by Denym Bird Co-founder & CEO of Paidnice

Denym started Paidnice in 2022 after customers paying late left his own business short on payroll. He has led it to $1 billion collected on time across more than 1 million invoices, and writes about credit control, late fees and getting paid on Xero and QuickBooks.

Reviewed by Ashley Schroder Co-founder of Paidnice

Ashley is a co-founder and lead developer of Paidnice and has built accounting software for more than 10 years. He builds the ledger connections that put reminders, late fees and payments into Xero, QuickBooks and ERPs such as NetSuite and Business Central. Before Paidnice he co-founded A2X, ecommerce accounting software for Xero and QuickBooks.

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