Free collections software: Is it worth it for 20 overdue clients?

I've been in the service industry for years; a business that doesn't stay on top of its receivables is doomed to fail. 20 clients is a critical threshold—it's impossible to manage manually on a spreadsheet. The biggest advantage of software is that it takes the emotion out of it. The system sends reminders without missing a beat, and you don't have to feel awkward doing it.

We were in a similar boat with 18 overdue invoices totaling around 22,000 EUR. We set up a free tracking tool and kicked off automated tiered emails. In the first two weeks, 9 clients paid a combined 11,500 EUR; turns out the invoices were just buried in their accounting queues. The remaining 9 files took direct phone calls.

Don't waste time, get all 20 invoices loaded into a free account today. Set up the first template as a "due date reminder" and the second as a "past due notice." You'll see at least 5 or 6 invoices clear themselves up within 48 hours. That leaves you with actual time to focus on the stubborn ones.

A debtor at 90 days couldn't care less about automation. When an accountant sees an automated email, they think "it's just a system blast, no lawyer behind this" and push your invoice right to the bottom of the pile. Waiting on automated emails for 28,000 EUR that's over 60 days late only works in the debtor's favor.

The rule for collections is simple: 1) Polite reminder 3 days before due date, 2) Overdue notice the day after it's due, 3) Phone confirmation on day 15, 4) Formal demand letter via registered mail on day 45. Software handles the first two steps flawlessly; you handle the last two yourself.

id call their accountant directly before hooking up any software... half the time invoices are just stuck waiting on approval or missing a po software wont fix that but at least seeing all 20 accounts on one screen takes some stress off.

edit: I wrote something wrong above, sorry about that.

Under the French Commercial Code, unless stated otherwise in your contracts, B2B payment terms are capped at 60 days from the invoice date. Having clearly stated the statutory interest and late fee recovery allowance on your invoices will give you strong legal leverage once you move to formal enforcement.

Are you still providing services to these 20 clients? If you are, how will aggressive reminders from a software tool affect those relationships? Did you include a clause in your contracts giving you the right to suspend work for non-payment?

I'm curious too.

Let's separate the concepts, they're getting mixed up. Just because everyone does it doesn't mean it's right.

If you don't write this down from the start, it leads to arguments later.

the answer above hits the nail on the head then tbh if it's your frist time, start small; scaling comes later.

hope this helps.

Let me clarify the technical side. When making a decision first look at what data you have on hand.

I've been dealing with this for a long time. When you try to change everything at once, nothing settles.

Proven by experience.

Thanks this was very helpful.

Great work. Taking notes for two weeks yields better results than a six-month estimate.

This is my opinion, I'm not claiming it's absolute truth.

I'm in the same situation, that's why I'm asking. Don't hesitate to ask; those who don't ask always pay more.

Proven by experience.

The opposite happened to me, that's why I'm writing. Every "we'll look at it later" in a meeting means unbilled work.

Proven by experience.

i agree with this. i mean weekly written progress reports are much more useful than asking for dates.