In the bustling world of small business where efficiency is key and time is a precious commodity, collection software is a game-changer. As we navigate through 2023, the right collection software can be the trailblazer for your business, especially when it comes to managing your finances. In this article, we'll explore the top 5 collection software for small businesses in 2023, diving into their key features and how they can streamline your operations.
At its core, collection software is a tool designed to make your life easier. It takes the hassle out of tracking invoices, managing expenses, and keeping tabs on your financial health. But with so many options out there, how do you choose the right one for your business? That's where we come in.
Key features to look for as a small business
As we delve into the world of collection software, it's crucial to understand the key features that make these tools so valuable for small businesses. Here's a rundown of the essential features to look for:
Need to have:
- Automation: Saves time by handling repetitive tasks like sending payment reminders.
- Omnichannel Communication: Reach customers synchronously on all platforms - email, SMS, social media, and phone calls.
- Customization: Tailor the software to fit your specific business needs.
- Customer-centric approach: Ensures a smooth experience for customers, facilitating more manageable payments and dispute resolution.
- Compliance assurance: Keeps you in line with laws and regulations, protecting your business from legal issues.
Nice to have:
- Call logs and notes: Tracks all customer interactions, providing valuable insights for strategy improvement.
- Collection scoring and KPIs: Prioritize efforts based on debt recovery likelihood and measure strategy effectiveness.
- Access to credit reports: Provides information about customers' creditworthiness, aiding in informed decision-making.
- Debt dispute tracking: Manages and resolves disputes effectively, maintaining good customer relationships.
Remember, the right collection software is not just about having great features, but about how they align with your specific business needs.
Top 5 collection software for small businesses in 2023
The top 5 collection software for small businesses in 2023 is:
Let’s dive deeper into each individual offer so you can make an informed decision and choose the one that better fits your business needs.
Arrears is an AI-enabled communications platform designed to accelerate account receivables, optimize efficiency, and enhance customer experience. It's a catalyst in debt collection technology, offering a seamless blend of technology, efficiency, and customer-centric design.
- Free: Try it for free
- Pro: $99 /month
- Enterprise: Custom pricing.
- Tech-Driven: With features like automated communications, template generators, and seamless integrations, Arrears is a tech-savvy solution for your collection needs
- People-Focused: Arrears puts people first with its white-labeled debtor portal, automated omnichannel communications, and tone-focused messaging.
- Transparent: Arrears offers customizable options, fair and transparent pricing, and tailored payment options.
- Industry compliant: REG-F, FDCPA, FCTA, TCPA.
- Complexity: The wide array of features might be overwhelming for users who are new to collection software.
Chaser is an account receivable automation software and credit control service designed to get your invoices paid sooner. You can save hours on accounts receivable tasks and reduce your day's sales outstanding significantly, all while maintaining great customer relationships.
- Basic: $49 /month
- Standard: $129 /month
- Enterprise: $369 /month
- Efficient Receivables Management: When used daily, Chaser is very helpful in managing receivables, keeping your cash flow healthy.
- Simplicity: Chaser is simple to use and provides relevant information such as outstanding value and overdue amounts at a glance.
- Customer Service: Users have praised Chaser for its good customer service, ensuring you have the support you need.
- Email Confusion: Clients often try to respond to a company’s email but get confused and end up responding to Chaser's email address.
Gaviti is a comprehensive accounts receivable collections management & automation solution. It's designed to boost your A/R team's efficiency, improve cash flow, and provide visibility into the entire collection process.
There’s no public pricing on their website but Capterra states that Gaviti's pricing starts at $49.95 per month.
- Automation: Great levels of automation that reduce your workload.
- Ease of implementation: Easy implementation that gets you up and running quickly.
- Not easy to use: Some features and workflows, like making promises to pay and responding to emails within Gaviti, can be a bit cumbersome.
Kolleno is a powerful tool that automates accounts receivable collection, cash forecasting, and invoice reconciliation. It's designed to streamline payment processing and improve credit control, allowing businesses to focus on growth.
Not provided by the vendor.
- Predictive algorithms: Uses historical data to predict client payment behavior.
- Automation: Automates tedious accounting tasks, saving time and resources.
- Customer service: Excellent customer success team for support and guidance.
- Not easy to use: The platform can be a bit complex for non-tech-savvy users.
- Unclear features: Some features may be difficult to understand for those unfamiliar with such platforms.
LeadSquared's Debt Collection CRM is a powerful tool designed to streamline your debt collection process. It provides a 360-degree view of your borrower profiles, enabling you to track and follow up with defaulters efficiently.
- Lite: $25 /month
- Pro: $50 /month
- Super: $369 /month
- Ultimate: Custom pricing
- Comprehensive Dashboard: Provides an excellent overview of progress.
- Efficient Tracking: Ensures effective follow-up with borrowers.
- Versatility: Adaptable to different business needs across various sectors.
- Lack of Aggressiveness: Could be more proactive in pushing leads for conversion.
- Large Contacts Handling: May struggle with a large number of contacts.
- Integration Complexity: Integration with other software can be complicated.
How to choose the right debt collection software for your specific business needs
Choosing a debt collection software is a significant decision for your business. It's not something to rush into. Your entire operation will need to adapt to the chosen platform, and the success of your collections will hinge on this choice. Here are the steps you should follow to make the best choice:
- Identify your business needs: Every business is unique, and so are its collection needs. Start by identifying what you need from a collection software. Do you need it for invoicing, expense tracking, or both?
- Consider the number of users and accounts: The size of your business and the number of users who will be using the software is another important factor. Some software options may limit the number of users or charge extra for additional accounts.
- Consider your budget: While it's important to invest in good collection software, it's equally important to stay within your budget. Remember, the most expensive option isn't always the best one.
- Research different software options: Spend some time researching different collection software options. Look at their features, pricing, and customer reviews to get a better understanding of what they offer. Check out reviews and comparisons of different software options from websites such as Capterra, SourceForge, and GetApp.
- Check for integration: The best collection software should easily integrate with your existing systems. This will ensure a seamless transition and prevent any disruption to your operations.
- Request demos and price quotes: Most software providers offer free demos or trials. Take advantage of these to get a hands-on experience of how the software works. Also, don't forget to request price quotes to compare different options. You can schedule an Arrears demo here.
We hope you're now equipped with the knowledge to make an informed decision. Remember, there’s no such thing as one software that fits all cases. Evaluating your company’s unique interests and pain points will be the best guide in making the right decision. Happy software hunting!