# Credit management software for Xero and QuickBooks

Paidnice scores how each customer pays in **Xero and QuickBooks Online**, escalates credit-limit breaches and collects every invoice.

Source: https://www.paidnice.com/credit-management-software

## What is credit management software?

**Credit management software sets and monitors the credit you give each customer, flags credit risk from how they pay, and collects overdue invoices so they pay on your terms.** For credit you have already given, including the collections side often called credit control, that means five jobs:

- **Credit scores:** a score for each customer, built from how they pay you.
- **Credit limits:** an escalation when a customer goes over their limit.
- **Reminders and statements:** before and after the due date, on a schedule.
- **Late fees and interest:** the charges your terms allow, after a grace period.
- **Stop Credit:** a task for your team to put an account that does not pay on hold.

Deciding who gets credit in the first place is a separate job, done with credit applications and bureau data. Paidnice runs native credit checks from each customer's payment behavior on every plan, and Creditsafe bureau checks through your Creditsafe API connection on the Custom plan.

## Which type of credit management software fits your business?

Credit management covers four kinds of tool. Most small businesses on Xero or QuickBooks need the third.

| Type | Best for | What you get | Where it stops |
| --- | --- | --- | --- |
| Credit applications and decisioning | Lenders, distributors and enterprise credit teams | Onboarding forms, scoring models and limit approval | Needs credit analysts, a quote and a long setup |
| Bureau data and monitoring | Checking new customers before you give credit | Credit reports, alerts and trade references | Does not chase invoices |
| Credit and collections management (Paidnice) | Small businesses on Xero and QuickBooks Online that need credit limits, a credit score for each customer and automated collection in one tool | Credit scores, credit-limit escalations, reminders, statements, late fees and Stop Credit | Needs Xero or QuickBooks Online (other ledgers on Custom). No credit applications |
| Reminders inside your accounting software | A few invoices a month | Basic invoice reminders | No credit limits and no scoring |

Paidnice runs the third type. See how [escalations and Stop Credit](https://www.paidnice.com/escalations) work, or compare the wider [accounts receivable software](https://www.paidnice.com/accounts-receivable-software) category.

## Credit management vs credit control

| Compare | Credit management | Credit control |
| --- | --- | --- |
| What it covers | The whole credit policy: who gets credit, how much, on what terms | The daily work inside that policy: reminders, statements and follow-up |
| When it happens | Before and after you give credit | After the invoice is sent |
| Where Paidnice fits | Credit scores, limits and Stop Credit. Creditsafe checks on Custom | Every step, automated from your Xero or QuickBooks invoices |

For the collections side on its own, see [credit control software](https://www.paidnice.com/credit-control-software).

## Paidnice is credit management software for small business

Most small businesses on Xero or QuickBooks Online do not need a credit decisioning platform. They need accounts receivable automation that shows who pays late, acts when a customer goes over their credit limit and collects every invoice on their terms.

- **No decisioning project:** a credit score for each customer from how they pay, with no analysts, quote or long setup
- **More than bureau data:** Paidnice acts on the risk: it escalates credit-limit breaches and chases every invoice
- **More than built-in reminders:** credit limits, scores, reminders, statements and late fees in one tool

## How Paidnice manages credit and collections

### Aging, DSO and a credit score for each customer

For every customer. See aging and DSO for the whole ledger, and a credit score from 0 to 100 for each customer. Paidnice tells you who to call first. [More on reporting](https://www.paidnice.com/accounts-receivable-reporting)

### Credit-limit escalations and Stop Credit

Over the limit. When a customer goes over their credit limit or stops paying, an escalation goes to a person: a call, a formal letter or Stop Credit. [More on escalations](https://www.paidnice.com/escalations)

### Reminders by email, SMS and WhatsApp

Before it is due. Reminders go out before, on and after the due date, with different rules for each customer group. Each one has a link to pay. [More on reminders](https://www.paidnice.com/email-sms-reminders)

### Late fees and interest

Once it is late. Paidnice adds the fee or interest your terms allow, posts it to Xero or QuickBooks and can tell the customer. Each fee can wait for your approval. [More on late fees](https://www.paidnice.com/late-fees)

### Payment portal and plans

When they pay. Customers see every open invoice and pay by card or bank debit, or move to a payment plan. No login needed. [More on the payment portal](https://www.paidnice.com/customer-payment-portal)

### AI that reads every reply

When they reply. Paidnice reads each reply, logs promises, looks into disputes and proposes the next step: a payment plan, new terms or Stop Credit. You approve or change it, or pre-approve that type of action for each customer. [More on reply handling](https://www.paidnice.com/ai-accounts-receivable)

## What to look for in credit management software

- **Works with your ledger:** It reads invoices from Xero or QuickBooks Online and posts fees back.
- **A score per customer:** A credit score from 0 to 100, built from how each customer pays.
- **Credit-limit actions:** An escalation or Stop Credit task when a customer goes over their limit.
- **Disputes that pause chasing:** Customers dispute an invoice in the portal, and reminders can pause until it is resolved.
- **Late fees you control:** A fee or interest after a grace period, only where you choose.
- **A price you can see:** Published plans priced by invoice volume, with a free start.

## Price

Paidnice starts from US$69 a month, priced by invoice volume. Pro, with the full core feature set and unlimited users, starts from US$99 a month. Your first 20 actions are free. See [pricing](https://www.paidnice.com/pricing).

## Credit management software: common questions

### What is credit management software?

Credit management software sets and monitors the credit a business gives its customers and collects what they owe. Some tools handle the credit decision, with applications and bureau data. Paidnice manages the credit already given, for businesses on Xero and QuickBooks Online.

### What is credit and collections management software?

Credit and collections management software automates accounts receivable: it tracks each customer's credit risk, enforces credit limits and collects past-due invoices with reminders, a payment portal and escalation. Paidnice does this for small businesses on Xero and QuickBooks Online, with a credit score for each customer, credit-limit escalations, disputes and promises to pay, and DSO and aging reports.

### What is the best credit management software for a small business?

For a small business on Xero or QuickBooks Online, look for credit and collections software that connects to your ledger, scores each customer from how they pay, acts when a customer goes over their credit limit and publishes its price. Paidnice does all four. Credit decisioning platforms suit lenders and enterprise credit teams.

### What does credit management mean?

Credit management is how a business decides who can buy on credit, how much and on what terms, and then makes sure those customers pay on time. It runs from the credit decision to the final payment.

### What is a credit management system?

A credit management system is your written credit policy plus the software that applies it. The policy sets credit limits, payment terms and the steps for accounts that do not pay. Paidnice runs those steps on every invoice in Xero or QuickBooks Online.

### What are the five Cs of credit management?

Character, capacity, capital, collateral and conditions: the five factors used to decide whether to give a customer credit. Paidnice works after that decision. It tracks character from how each customer actually pays you, as a credit score from 0 to 100.

### What is the difference between credit management and credit control?

Credit control is the part of credit management that collects what customers owe: reminders, statements and follow-up after the invoice is sent. Credit management also decides who gets credit and how much. Paidnice automates credit control and enforces the terms around it: limits, late fees and Stop Credit.

### Does Paidnice run credit checks?

Yes. Paidnice runs native credit checks on every plan: each customer gets a [credit score](https://www.paidnice.com/credit-scoring) from 0 to 100 built from their payment behavior with you. That score is not a bureau score. Creditsafe bureau checks run through your Creditsafe API connection on the Custom plan.

### Does Paidnice process credit applications?

No. Credit applications and limit approval are done in a credit decisioning platform or by your team. Paidnice starts once a customer has credit and invoices in Xero or QuickBooks Online.

### Can I set credit limits and get alerts?

Yes. Set a credit limit for each customer in Paidnice. An escalation starts when a customer goes over their credit limit, passes a total balance you set, or reaches a number of days overdue. You choose which of these trigger one.

### What happens when a customer goes over their limit?

The escalation goes to a person on your team with the full history: credit score, average days to pay and past emails. They run the next step: a phone call from Paidnice (recorded and transcribed), a formal letter or a Stop Credit task.

### How much does credit management software cost?

Paidnice Pro has the full core feature set and unlimited users, from US$99 a month for 300 invoices to US$799 a month for 4,000. Plans start from US$69 a month, priced by invoice volume, not revenue. Creditsafe credit checks are on the Custom plan. See [pricing](https://www.paidnice.com/pricing).

## Related

- [Credit control software](https://www.paidnice.com/credit-control-software): The collections side, step by step
- [Accounts receivable software](https://www.paidnice.com/accounts-receivable-software): The wider category, and which type fits
- [Debtor management software](https://www.paidnice.com/debtor-management-software): The same job, in Australia and New Zealand
- [Escalations](https://www.paidnice.com/escalations): Calls, letters and Stop Credit
- [AR reporting](https://www.paidnice.com/accounts-receivable-reporting): Credit scores, DSO and aging
- [Debtor management software in New Zealand](https://www.paidnice.com/blog/debtor-management-software-new-zealand): For NZ businesses