--- title: "Debt Collection Software for Small Business | Paidnice" description: "Collect overdue invoices without damaging customer relationships. Paidnice's debt collection software automates reminders, late fees & payment plans for Xero & QuickBooks." url: https://www.paidnice.com/debt-collection-software --- # Debt collection software for small business. Paidnice is first-party debt collection software for small businesses on Xero and QuickBooks Online. It collects your overdue invoices with reminders, late fees, payment plans and escalation, in your name and your tone. - Collect your own invoices. Keep 100% of what you recover. - Every message goes out under your brand. - Payment plans for customers who need time. Book a demo Try it now, it's free No credit card. Your first 20 actions are free. NZ Small BusinessApp of the Year 2026 Global Appof the Year 2025 Works with Read all 160+ reviews ## What is debt collection software? Debt collection software automates the follow-up on overdue invoices: reminders, late fees, payment options and a record of every contact. For a small business it replaces the spreadsheet and the inbox with a process that runs on its own. Paidnice is first-party software. You collect your own invoices from your own customers, and no third-party agency is involved. Up to 50%cut in days to get paid, first 30 days1 million+invoices put through Paidnice$1 billion+collected since 2022 ## Overdue reminders that stay polite and firm. Email and SMS reminders go out on the schedule you set, from your own domain, in your words. The tone gets firmer as the invoice gets older. Business hours only. JM Jon Murphy🇬🇧 United Kingdom "Being able to send all communications directly from my own domain, everything looks fully branded and professional, with delivery tracking built in." More on email and SMS reminders ## Late fees that give customers a reason to pay. Fixed fees, a percentage, or a per annum interest rate, applied on the day you choose. Exclude any customer or a whole group, and set a grace period before anything is charged. IA Ismael A.🇺🇸 USA "First round of late penalties and everyone magically paid their bill." More on late fees and interest ## Payment plans and escalation for the hard cases. Offer a payment plan with automatic installment reminders. If the customer still does not pay, the account is escalated to a phone call, a credit hold or a formal letter, with the full contact history attached. Calls run from Paidnice, and each one is recorded and transcribed. LO Louis D.🇿🇦 South Africa "Paidnice is a great tool to keep your clients accountable, adding a critical feature that Xero was lacking." More on payment plans ## Everything you expect from debt collection software **Paidnice gives a small business the full first-party collection process.** It starts with a polite reminder and ends with an escalation to a person, with every contact recorded. ### Chase automatically Send Reminders Automate email and SMS with powerful reminders, from your own domain. Automate Statements Schedule automatic statement sends each month. AI Reply Handling Paidnice reads every reply and drafts the next step for your approval. ### Enforce your terms Late Fees & Interest Automatically apply and send late fees and interest. Prompt Payment Discounts Encourage early payment with automated discounts. Escalate & Track Calls Escalate and assign overdue invoices for manual follow up. ### Get paid, and see it coming Customer Payment Portal Self-service hub for your customers' payment and billing needs. Create Payment Plans Flexible payment terms with automatic installment reminders. AR Insights & Reports Measure Days Sales Outstanding and other critical KPIs. See it on your ledger: [accounts receivable automation for Xero](https://www.paidnice.com/xero/accounts-receivable) or [accounts receivable automation for QuickBooks](https://www.paidnice.com/quickbooks/accounts-receivable). For the reminder schedule itself, see [dunning software](https://www.paidnice.com/dunning-software). Paidnice is built on [full accounts receivable automation](https://www.paidnice.com/ar-automation). ## It plugs into the Xero or QuickBooks you already have. Nothing changes in Xero or QuickBooks unless a rule you set makes it happen. Paidnice connects through the official Xero and QuickBooks integrations, so we never see your accounting password. 1. **Connect Xero or QuickBooks in one click.**Two minutes. 2. **Pick a preset template for reminders, fees and statements.**Ten minutes. 3. **Your overdue invoices start getting chased today.**No data entry and no new invoicing tool. > It’s the debt collection system I’ve been looking for, for the last 15 years. Tyler Caskey Partner, The Bean Counters Accounting Apps Podcast Read the reviews ## Businesses that get paid on time Within the first month of implementing Paidnice, we saw late customer payments decrease from over 20% to zero. **Alex Hamilton**, Paintvine, New Zealand Read the case study → The biggest impact from using Paidnice has really been man hours for me. Just by using Paidnice, it's freed up loads and loads of time. We're talking five hours already of admin per month, and we're a scaling business. In a year, that could be 15 to 20 hours a month. **Jon Murphy**, Salt Silo, United Kingdom Read the case study → Before Paidnice, over 25% of our payments were late, which we were manually chasing up. With Paidnice automating this for us, that has dropped to less than 5% **Louis Fourie**, Venture Workspace, South Africa Read the case study → [See all customer stories](https://www.paidnice.com/success-stories) ## Debt collection software: common questions What is debt collection software? Debt collection software automates the follow-up on overdue invoices: reminders, late fees, payment options and a record of every contact. Paidnice is debt collection software for businesses on Xero and QuickBooks Online, built on full accounts receivable automation. Is Paidnice a debt collection agency? No. Paidnice is first-party debt collection software. It helps you collect your own overdue invoices directly from your customers. We are not a third-party collections agency, we do not buy debt, and we do not contact customers on our own behalf. Every message goes out from your business, in your tone, under your branding. What is the difference between debt collection software and a debt collection agency? A debt collection agency is a third-party service that collects on your behalf, usually for a percentage of what it recovers (20% to 50% is typical). Debt collection software lets you recover the debt yourself, automatically, for a flat monthly fee. You keep 100% of what you collect and you control the tone of every message. What is the 7-7-7 rule for collections? The 7-7-7 rule comes from Regulation F of the US Consumer Financial Protection Bureau. It limits third-party debt collectors to 7 phone call attempts in a 7-day period for the same debt. It applies to collection agencies. It does not apply to a business that collects its own invoices from its own customers, which is first-party collection. Is there automated debt collection software for small businesses? Yes. Paidnice is built for small businesses. It runs on top of Xero or QuickBooks Online, sets up in under 15 minutes, and its plans are priced by invoice volume. What KPIs should I track for debt collection? Track Days Sales Outstanding (DSO), the Collection Effectiveness Index (CEI), Average Days Delinquent (ADD) and the AR turnover ratio. Together they show if your collection process improves cash flow. Does it change anything in my Xero or QuickBooks? Nothing changes unless a rule you set makes it happen. Paidnice connects through the official Xero and QuickBooks integrations, so we never see or store your accounting password. It works from the invoices already in your accounting system. Can I control which customers get contacted? Yes. Exclude any customer, or a whole group. Add grace periods, and set different rules for different groups, so the customers who pay on time are left alone. Start in approval mode, so nothing sends without your OK. Is there a free trial? Yes. Your first 20 actions are free, with no credit card. Paid plans start at US$69 a month and follow your invoice volume, not your company revenue. ## Start getting paid on time with Paidnice Connect Xero or QuickBooks and Paidnice prepares draft policies for you. Nothing runs until you approve them. Try it FreeBook a Demo [Rated 5 stars, 160+ reviews](https://www.paidnice.com/reviews) · [App of the Year](https://www.paidnice.com/blog/winner-xero-global-app-awards-2026)