10 Best Debt Collection Software for AR teams in 2025 

Collections are evolving rapidly, moving from manual, reactive processes to AI-driven, data-backed operations. Today, 52% of companies are investing in new tools to enhance operations, shifting debt collection from a manual, reactive process to a proactive, efficient one. AI and automation are taking over routine tasks, allowing collectors to focus on complex cases and significantly improving operational efficiency. In fact, a recent PwC survey found that 66% of executives reported measurable productivity gains from AI agents, highlighting how collection automation reduces manual work while boosting results. 

Modern debt collection software helps prioritize overdue accounts, automate follow-ups, and track performance with real-time dashboards. It integrates with ERP and accounting systems, sends reminders across multiple channels, and uses AI to predict which customers will most likely pay. In this guide, we have curated a list of 10 of the best debt collection software solutions for 2025.

Top Collections Automation Software at a Glance

Effective collections start with the right software. From simplifying workflows to tracking outstanding payments, modern solutions help teams work smarter, not harder. Here’s a quick look at the leading debt collection solutions. Find the right collections software to streamline collections, reduce past due invoices, and improve cash flow for your business.

Software	Best Suited for
HighRadius	Large enterprises and global corporations seeking AI-driven collections with seamless ERP integration.
Billtrust	Businesses seeking integrated invoicing and collections.
Esker	Companies seeking collections management with payment tracking.
Gaviti	Teams looking for automated, client-friendly payment communications.
Versapay	AR teams seeking collaborative AR automation with AI insights and predictive analytics.
Kolleno	Companies focused on workflow automation and payment tracking.
Upflow	Organizations requiring centralized collections management and automated follow-ups.
Chaser	Collection teams focused on improving invoice follow-ups.
Tesorio	Businesses seeking to leverage AI for collections optimization.
Agicap	Organizations aiming to streamline collections via AR automation.

What Is Debt Collection Software?

Debt collection software is a tool businesses use to manage and recover unpaid invoices. It automates reminders to customers, tracks overdue payments, prioritizes accounts, and provides insights on collection performance. By reducing manual work, it helps finance teams improve cash flow, stay compliant with regulations, and enhance productivity. Essentially, streamlining the entire collections process.

Why Do Businesses Need It?

A good debt collection software not only allows businesses to track and follow up with defaulters efficiently but also helps predict debt recovery and enables faster collections. Here are a few key benefits of having a collections software: -

• Accelerates collections: Automates follow-ups and prioritizes high-value accounts.
• Reduces past-due amounts: Sends timely reminders to accelerate payments and minimize overdue balances.
• Improves visibility: Offers real-time dashboards and reports on outstanding balances.
• Enhances customer experience: Makes communication consistent and professional.
• Supports scalability: Adapts to growing AR volumes without adding headcount.

10 Best Debt Collection Software

Before exploring the top 10 debt collection software solutions in depth, it’s worth noting that every platform serves a unique purpose, from AI-driven enterprise tools to simple automation platforms for SMEs. Here’s an overview to help you identify the best fit for your AR team.

1. HighRadius

HighRadius’ AI-based collection automation software is a comprehensive solution designed for large enterprises to streamline the debt collections process. With agentic AI capabilities, the platform helps teams prioritize delinquent accounts, upload and keep track of invoices on AP portals, and reduce past-due accounts. By automating workflows and follow-ups, the platform minimizes manual effort, shortens collection cycles, and accelerates cash flow.

Key Features 

• AP Portal Automation: Automatically retrieves invoice status from portals, uploads invoices to AP portals, logs P2Ps, and updates notes for seamless collections tracking.
• Dispute Resolution: Helps tag, route, and resolve invoice disputes efficiently while gathering necessary notes and attachments from multiple teams.
• AI Prioritized Worklist: Ranks and prioritizes accounts based on risk and value, assigning collectors and actions optimally based on bandwidth and preferences.
• In-App Dialer: Automatically generates talking points, transcribes and summarizes calls, logs notes, schedules follow-ups, and manages voicemails within the application.
• AR Email Inbox: Auto-labels, allocates, and tracks collection emails; suggesting actions based on intent and customer responses for faster resolution.
• Dunning Emails: Sends automated statements and reminders, optimizes open rates, and includes actionable links for quick resolution.
• Integration with ERP/Accounting: Syncs collection activity with existing accounting systems for seamless workflow.

2. Billtrust

Billtrust is an AI-powered collections platform designed to streamline overdue payment recovery for mid-sized to large enterprises. It uses AI to analyze customer payment behaviors and automatically segment accounts for personalized collections strategies, helping finance teams reduce past-due invoices efficiently.

Key Features

• Smart Collections Automation: Automates dunning workflows, reminders, and escalations to improve recovery rates.
• AI-Powered Payment Prioritization: Prioritizes accounts based on payment risk and likelihood to pay.
• Payment Promise Tracking: Monitors customer commitments and automates follow-ups.
• AI-Powered Cash Forecasting: Predicts potential cash flow gaps and recommends proactive actions to accelerate receivables.
• Collection Analytics: Provides dashboards and reports on overdue accounts, past-due invoices, and recovery performance.
• Multi-Channel Outreach: Sends collection communications via email, SMS, and portal notifications.
• Customer Self-Service Portal: Enables customers to view invoices, make payments, and manage disputes seamlessly, reducing friction and strengthening relationships.

3. Esker

Esker collections management is a debt collection software that streamlines accounts receivable, automates reminders, predicts payments, and improves cash flow efficiency while offering real-time insights and customer self-service capabilities.

Key Features

• AI-Driven Payment Forecasting: Predicts customer payment behaviors to enable proactive collections and reduce delinquency risk.
• Automated Reminders and Tasks: Sends payment reminders and generates task lists for timely collections follow-ups.
• Centralized Communication Hub: Manages all customer interactions and collection correspondence in one interface efficiently.
• Customer Self-Service Portal: Provides online access for invoices, payments, and dispute resolution anytime.
• Real-Time Reporting and Analytics: Offers insights into collections performance, cash flow, and overdue account trends.

4. Gaviti

Gaviti centralizes collections for enterprises, automating reminders and follow-ups to improve payment recovery while keeping communication consistent and professional. It offers customizable workflows, detailed reporting, and a customer portal to enhance communication and streamline collections.

Key Features

• Automated Collection Reminders: Sends follow-ups to overdue customers automatically.
• Centralized Account Management: Tracks all customer invoices and payment statuses in one place.
• Real-Time Payment Tracking: Monitors collection progress and overdue accounts continuously.
• Multi-Channel Communication Templates: Standardizes emails, letters, and portal messages for efficiency.
• Collection Analytics Dashboards: Offers insights into overdue payments, recovery trends, and DSO.
• ERP Integration: Ensures collection activity is reflected across accounting and finance systems.

5. Versapay

Versapay is a collaborative accounts receivable platform that helps businesses automate their collections process. It uses predictive analytics to identify potential delinquencies, allowing teams to take proactive action. The platform integrates seamlessly with ERP systems and leverages AI to streamline cash application and improve overall cash flow efficiency.

Key Features

• Automated Collections and Dunning: Sends reminders and manages overdue accounts to streamline the collections process efficiently.
• Customer Self-Service Portal: Enables invoice viewing, payments, and direct communication with AR teams.
• Predictive Delinquency Analytics: Identifies high-risk accounts and predicts potential late payments proactively.
• ERP and AP Portal Integrations: Seamlessly exchange data between ERP systems and customer AP portals.
• Collaborative Communication Tools: Facilitates dispute resolution and enhances customer relationships effectively.

6. Kolleno

Kolleno automates debt collection communications, enabling teams to recover payments faster while reducing manual workload. It provides real-time cash flow analysis and context-sensitive insights, enhancing operational efficiency through a user-friendly interface that enables quick onboarding and seamless system integration.

Key Features

• Automated Reminders: Sends email and SMS notifications for overdue invoices.
• Multi-Channel Outreach: Engages customers across different communication channels.
• Payment Dispute Management: Tracks and resolves customer disputes efficiently.
• Priority-Based Segmentation: Focuses collection efforts on high-risk or overdue accounts.
• Accounting Software Integration: Syncs collection activity with financial systems for accuracy.

7. Upflow

Upflow’s automation tool centralizes debt collections for businesses, automating follow-ups and monitoring outstanding payments to ensure faster recovery and improved cash flow.

Key Features

• Automated Overdue Invoice Reminders: Sends follow-ups automatically to reduce late payments.
• Multi-Channel Communication: Engages customers via email, portal messages, and notifications.
• Centralized Payment Tracking: Provides a single view of all outstanding invoices and accounts.
• Collection Analytics Dashboards: Tracks overdue invoices, DSO, and collection performance.
• Priority-Based Segmentation: Focuses team efforts on high-risk accounts.
• ERP and Accounting System Integration: Ensures collection data is accurately reflected across finance systems.

8. Chaser

Chaser is credit control software designed for small and medium businesses to recover overdue invoices faster while maintaining professional customer relationships. It automates follow-ups and helps finance teams reduce outstanding payments efficiently.

Key Features

• Automated Invoice Follow-Ups: Sends reminders automatically based on overdue schedules to reduce manual effort.
• Personalized Collection Messaging: Tailors reminders to individual customers to increase response rates.
• Multi-Currency Support: Enables follow-ups and collections across international clients.
• Real-Time Payment Tracking: Monitors outstanding invoices and payment progress on a central dashboard.
• Accounting Software Integration: Syncs collections data for streamlined workflows and reporting.

9. Tesorio

Tesorio automation solution leverages AI to automate collections, predict payments, and prioritize overdue accounts. The tool helps finance teams recover debts efficiently with reduced manual efforts and improve cash flow visibility.

Key Features

• AI-Driven Prioritization: Focuses on accounts most likely to pay to maximize recovery.
• Automated Reminders and Follow-Ups: Reduces manual effort in chasing overdue payments.
• Customer Segmentation: Organizes accounts by risk, overdue status, and payment behavior.
• Real-Time Collection Dashboards: Tracks KPIs like DSO and recovery rates.
• ERP and Accounting Integration: Synchronizes collections with existing financial systems.

10. Agicap

Agicap CashCollect automates key accounts receivable processes to help businesses streamline debt collection, reduce past-due invoices, and enhance cash flow visibility. Its intuitive interface is easy to use and well-suited for SMEs. It leverages intelligent automation and analytics to enhance decision-making for business.

Key Features

• Automated Payment Reminders: Streamlines the follow-up process for overdue invoices, reducing manual intervention.
• Past-Due Monitoring: Tracks overdue invoices in real-time to improve collection prioritization and follow-ups.
• Customer Risk Analysis: Evaluates debtor profiles to inform collection strategies. 
• Centralized AR Management: Consolidates all receivable information in one place for accurate and up-to-date records.
• Dispute Management: Allows teams to pause reminders for disputed invoices and track resolution progress efficiently.

Key Features to Look for in a Debt Collection Software

When evaluating debt collection software, it’s important to focus on features that drive efficiency and results. The best solutions combine automation, flexibility, and scalability, simplifying workflows while adapting to your organization’s size, complexity, and customer base.

1. Automated Workflows - Automation is the heart of collections automation. Look for software that allows you to set up workflows for reminders, follow-ups, and escalation paths.
2. Segmentation and Prioritization - A strong accounts receivable collection software should allow segmentation by region, customer type, or invoice amount. This helps collectors prioritize accounts effectively.
3. Real-Time Reporting and Dashboards - Visibility is key in collections. Advanced dashboards give AR managers real-time data on overdue balances, collector performance, and payment patterns
4. Integrations with ERP and Accounting Systems - The best tools integrate with popular ERPs such as SAP, Oracle, and NetSuite to eliminate data silos and ensure accurate reconciliation.
5. Multi-Channel Communication - Automated email, SMS, and portal-based reminders improve reach and ensure customers receive timely communication.
6. Compliance and Security - Top debt collection management software complies with regulations such as GDPR and ensures sensitive financial data is secure.

How to Choose the Right Accounts Receivable Collection Software?

Choosing the right accounts receivable collection software can make a significant difference in improving cash flow, reducing DSO, and streamlining your collections process. Here’s what to consider:

1. Assess Your Business Needs  - Start by understanding the organization’s debt collection challenges. 

• Are you handling a high volume of accounts? 
• Do you need multi-channel communication for international clients? 

Identifying your specific pain points ensures you pick software that addresses them effectively.

2. Look for Automation Capabilities - Automated reminders, follow-ups, and workflow management reduce manual effort and accelerate recovery. The more automation a platform offers, the less time your team spends chasing overdue payments.

3. Evaluate Analytics and Reporting - An Effective collections software solution should provide actionable insights. Look for features like dashboards, aging reports, payment behavior analytics, and collection performance metrics. These help prioritize accounts and optimize recovery strategies.

4. Check Integration Options - Ensure the software integrates seamlessly with your existing ERP, accounting, or CRM systems. Smooth integration helps maintain accurate records, improves reporting, and eliminates duplicate work.

5. Consider Compliance Features  - Debt collection is highly regulated. Choose software that helps maintain compliance with regional laws, including automated logging, communication tracking, and dispute management.

6. Prioritize Ease of Use - A user-friendly interface is critical for adoption across your team. Look for intuitive dashboards, simple workflows, and minimal training requirements to ensure your team can start using the software effectively.

7. Scalability and Support - Your business needs may grow over time. Choose a solution that can scale with your operations and offers responsive customer support to help you resolve any issues quickly.

Why Choose HighRadius Collection Management Software?

HighRadius is a leading choice for organizations seeking a comprehensive, AI-powered debt collection automation solution. Our cloud-based collections management software streamlines the collection process, helping finance teams reduce past dues by 20%, accelerate cash recovery, and improve overall productivity by 30%. By combining AI-driven prioritization, automated dunning, in-app calling, and real-time analytics, HighRadius empowers teams to focus on strategic tasks instead of manual follow-ups.

At the heart of our platform are 15+ AI agents, AP Portal Invoice Upload, Dispute Prevention, AR Email Inbox, and In-App Outbound Calls, to name a few, that automate repetitive tasks and intelligently guide collector actions. This enables finance teams to achieve 2X collection calls and 3X collection emails, ensuring timely, consistent, and effective customer engagement. With Automated Dunning, businesses can send up to 10X reminders and achieve 4X weekly past-due coverage, preventing overlooked invoices and shortening collections cycles.

Our Worklist Prioritization agent analyzes 20+ customer factors, such as historical payment behavior, to forecast delinquency 30 days ahead. It generates smart, prioritized worklists with suggested actions tailored to customer ranking and collector bandwidth, enabling teams to focus on accounts with the greatest impact on cash flow. These features have helped businesses reduce past-due invoices while increasing team productivity.

HighRadius also ensures harmonious ERP and bank integration, supporting multi-entity operations and complex currency environments for global scalability. With advanced analytics capabilities, customers can analyze data, generate reports, and take actions in natural language, simplifying workflows, delivering actionable insights, and enabling faster, smarter collections.

** This blog reviews 10 debt collection software solutions; the 1–10 sequence is for reference only and does not indicate ranking or quality.

FAQs

1. What are the key benefits of using collections automation software?

Collections automation software speeds up overdue payment recovery, reduces manual effort and errors, lowers DSO, improves cash flow, ensures consistent multi-channel communication, provides real-time insights, prioritizes high-risk accounts, and maintains regulatory compliance.

2. How does AI enhance debt collection automation?

AI enhances debt collection by analyzing payment behavior, predicting likely payers, prioritizing follow-ups, automating reminders and dunning emails, detecting disputes, and providing insights, reducing manual work and helping teams focus on high-value recovery tasks.

3. How can debt collections automation improve customer relationships?

Debt collections automation improves customer relationships by standardizing communications, sending consistent multi-channel reminders, offering flexible payment options, and personalizing follow-ups—reducing friction and maintaining positive interactions while recovering overdue payments.

4. Can HighRadius integrate with your existing ERP system?

Yes, HighRadius integrates seamlessly with ERP and accounting systems like SAP, Oracle, and NetSuite, automatically syncing collection activities, invoice statuses, and payments, reducing manual entry, improving accuracy, and providing a single source of truth for finance teams.

5. What makes HighRadius a leading collections automation software?

HighRadius is a leading collections automation platform with AI-driven account prioritization, automated reminders, predictive risk scoring, dispute management, generative AI dunning emails, and seamless ERP integration, reducing DSO, accelerating cash recovery, and minimizing manual work.

6. Why should businesses implement debt collection software?

Debt collection software helps businesses recover payments faster and more efficiently, boosting cash flow and reducing past-due accounts. Automating repetitive tasks saves time, reduces errors, and allows collectors to focus on high-priority accounts, ultimately improving team productivity and customer relationships.

7. How much does debt collection software cost?

Debt collection software costs vary based on features, depending on factors like AI automation capabilities, advanced reporting tools, workflow customization, and user volume. Larger enterprise solutions may have custom pricing based on data volume, user tiers, number of integrations, and implementation support.