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Dunning software for B2B invoices: the options compared

By The AR Agent team · · 6 min read

Dunning software automates the sequence of reminders a business sends when an invoice goes unpaid, starting polite and growing firmer over time. For B2B invoices, that means emails, and sometimes letters or other channels, tied to due dates in your accounting system. The right tool depends on your accounting system, your invoice volume, and how much of the work after each reminder you want handled.

We make The AR Agent, one of the tools on this page, so weigh what we say about it accordingly. Every claim about another product comes from that company's own website, opened on 27 October 2026 and listed under Sources.

What is dunning software?

Dunning is the process of reminding customers about money they owe, in steps that become more direct each time. A typical B2B sequence runs from a friendly note before the due date, to a firmer reminder after it, to a final notice that sets out what happens next. Our guide to dunning letters explains each stage and gives templates.

Dunning management software automates that sequence. It reads open invoices, picks the right step for each one based on how overdue it is, sends the message, and moves the invoice on to the next step if nothing happens. Better tools let you set different sequences for different customers and stop the moment a payment is recorded.

B2B invoice dunning vs subscription dunning

Search for "dunning software" and you will find two different kinds of product.

B2B invoice dunning Subscription dunning
What triggers it An invoice passes its due date A card or automatic payment fails
Who the customer is Another business, usually on payment terms Often a subscriber paying by card
What it sends Reminders and notices about unpaid invoices Retry attempts and emails asking for updated card details
What resolves it The customer pays the invoice, often by bank transfer The payment retries successfully or the card is updated
Where it connects Accounting software such as QuickBooks, Xero or an ERP A billing or payments platform

This page covers the first kind. If your problem is failed card payments on a subscription product, look at tools built into your billing or payments platform instead.

The options

Chaser

Chaser's site lists automated email payment reminders, SMS reminders, automated phone calls and letters, with integrations including QuickBooks Online, Xero, Sage, NetSuite, Microsoft Dynamics 365 Business Central and SAP. Fits best when you want a multi-channel dunning sequence on a wide range of accounting systems.

Paidnice

Paidnice describes itself as accounts receivable automation for Xero and QuickBooks. Its site describes reminders before, on and after the due date by email, text or WhatsApp, escalations that can include letters or credit stops, and late fees or interest added as your terms allow. It says nothing runs until you approve the policies. Fits best when you want policy-based dunning with late fees on Xero or QuickBooks.

Gaviti

Gaviti describes itself as an invoice-to-cash platform with automated, personalized workflows that chase payments, covering reminders, escalations and follow-ups, and task prioritization for the team. Its site says it works with any ERP. Fits best when an AR team wants configurable collection workflows alongside cash application and credit.

Tesorio

Tesorio's site describes automated dunning that runs scheduled, escalating sequences across the book, alongside a collections agent that drafts follow-ups and extracts payment promises. It names NetSuite, Sage Intacct, QuickBooks and Workday among its integrations. Fits best when a B2B finance team wants dunning as part of order-to-cash. See our Tesorio alternatives page for more.

Versapay

Versapay's site lists automated dunning, prioritization of high-risk accounts and collections tasks, as part of an AR platform with invoicing, payments and cash application. It names native integrations with NetSuite, Sage Intacct and Microsoft Dynamics 365. Fits best for businesses on those ERPs that want dunning connected to invoicing and payments. See our Versapay alternatives page.

HighRadius

HighRadius lists dunning emails, worklist prioritization and in-app payments within its collections coverage, as part of a wider order-to-cash platform. Its site names integrations with SAP, Oracle, Microsoft Dynamics and NetSuite. Fits best for mid-sized and large finance teams that want dunning inside one platform for many finance processes.

The AR Agent

The AR Agent is an AI agent that chases overdue invoices by email from the due dates in QuickBooks or Xero, through Gmail or Outlook. Instead of a fixed sequence, it reads each reply and decides the next step: a promise to pay is tracked, a blocker such as a missing PO is flagged, and a dispute pauses chasing and goes to a person. Fits best for small businesses that want dunning that responds to what customers say.

How do the options compare?

Tool Channels named on its site Accounting systems named on its site Built for
Chaser Email, SMS, automated phone calls, letters QuickBooks Online, Xero, Sage, NetSuite, Dynamics 365 BC, SAP and others Businesses and their accountants
Paidnice Email, text, WhatsApp, letters Xero, QuickBooks Businesses and bookkeepers
Gaviti Workflows with reminders and escalations Any ERP, per its site Finance and AR teams
Tesorio Scheduled escalating dunning NetSuite, Sage Intacct, QuickBooks, Workday Controllers and CFOs
Versapay Automated dunning NetSuite, Sage Intacct, Dynamics 365 Manufacturers, distributors, services
HighRadius Dunning emails SAP, Oracle, Dynamics, NetSuite Mid-sized and large finance teams
The AR Agent Email QuickBooks, Xero Small businesses without a credit controller

Frequently asked questions

Is dunning software the same as payment reminder software?

They overlap. Payment reminder software sends scheduled reminders. Dunning software adds escalation, where each step is firmer than the last and may end in a final notice. Our comparison of payment reminder software covers the simpler end, including built-in reminders in QuickBooks and Xero.

How many steps should a dunning sequence have?

Most B2B sequences use three to five steps: a reminder before the due date, one on or just after it, a firmer one a week or two later, and a final notice. More steps rarely help. After the final notice, a direct conversation usually does more than another automated message.

Can dunning software handle disputes?

It depends on the tool. Some let you pause a sequence by hand. Others detect a dispute in a reply and stop automatically. Ask each vendor to show what happens when a customer writes back disputing an invoice, because sending the next step anyway is the most damaging thing a dunning tool can do.

Do I need dunning software for a small business?

Not always. If you have few late payers, the reminders in your accounting software and a set of dunning letter templates may be enough. Dedicated software helps when the number of overdue invoices, or the replies they generate, takes more time than you have.

How The AR Agent handles this

The AR Agent runs dunning that listens. It reads due dates from QuickBooks or Xero and follows up overdue invoices by email from Gmail or Outlook, at the right time for each customer. When a customer replies, it works out what they mean. A payment date becomes a tracked promise, followed up if missed. A missing PO or wrong contact is flagged as a blocker. A dispute pauses chasing and goes to a person. Decisions that need judgement come to a human, and every email and action is recorded.

Talk to us: our AI agent chases your invoices until you are paid.

Sources

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