Managed receivables vs AR software vs debt collection

There are three common ways to handle invoices that aren't being paid. AR software automates reminders but leaves the work and the relationship risk with you. Debt collection is a last resort that arrives after a payment has gone bad, takes a percentage, and usually ends the relationship. Managed receivables sits between them: a neutral party runs every invoice from issuance, for a flat fee, designed so you get paid faster without losing the customer.

	AR software	Debt collection	Managed receivables (ChaseFlow)
Who does the work	You (it automates reminders)	The agency	A neutral party — fully delegated
When it starts	Whenever you set it up	After a payment has gone bad	From the day the invoice is issued
Relationship impact	Yours to manage	Usually ends it	Preserved — contact comes from a neutral mediator
Cost model	Subscription per seat/feature	15–30% of what's recovered	Flat fee per invoice — never a %
Holds your money?	No	Often yes	No — your customer pays you directly
Best for	Teams that want to keep doing it themselves, faster	Debts already considered lost	Businesses that want the function off their desk

The three aren't really competitors — they're different moments. Managed receivables is the only one that works before things go wrong, which is why it's the one that keeps you out of the other two.

Frequently asked questions

Is managed receivables cheaper than a collection agency?+

Almost always — a collection agency takes a percentage of what it recovers, while managed receivables is a flat per-invoice fee, so your cost doesn't scale with the invoice size.

Can't AR software do the same thing?+

AR software automates the reminders, but you still operate it and you're still the one applying the pressure. Managed receivables removes the work and the relationship risk entirely.

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