The chase is on
To continue with the theme of reviewing some of the apps that integrate with cloud accounting systems I’m reviewing some of the debtor management software that is available.
The system that I have trialled is called Chaser. As with all the other apps reviewed there are a few other options available such as Debtor Daddy, Invoice Sherpa & Satado.
What does the system do?
The principle of the system is to automatically send payment requests / reminders to your book of debtors on your behalf to minimise debtor days and reduce cash flow challenges.
How does it work?
The system allows you to customise both the content and timing of messages to clients/customers to allow your “tone of voice” and preferences ranging from a polite ahead of time reminder to a more stern overdue chase. The system as with other apps interfaces with online accounting packages to pick up the debtor data.
What is the benefit?
The benefit is to reduce debtor days – the app advertises an average 26 day reduction in payment cycle – improving cash flow and reducing potential funding costs.
How much does it cost?
Pricing starts at £10 per month to chase up to 20 invoices per month up to £125 per month to chase up to 1000 invoices per month.
Any standout features?
My favourite feature was the ability to customise messages and timing of messages for specific clients – if you have a client who is regularly late they can receive a different set of messages to a client who generally pays on time. I also like the feature to be able to send a thank you to clients when a payment is received.
What is the Mellor verdict?
My experience was that invoices were paid faster following prompts from the system. The value will depend on the exposure to unpaid invoices and volume of invoicing – the larger the exposure and volume the greater the potential benefit. My only note of caution is that as a recipient of some messages from these systems where I am the debtor it is imperative to ensure invoicing is issued in a timely fashion – I received this week an invoice and reminder note within 5 minutes of each other!
The app is not a replacement for effective credit control nor is it replacing debt recovery specialists – but for the rump of businesses and scenarios away from the extreme I think there is value to be had. By way of assessing the benefit I would recommend you consider the likely monthly cost as a percentage of your average unpaid invoices amount – if the answer is anywhere less than 0.5% then it is well worth considering.