Late payments aren’t just frustrating, they’re a drain on time, team energy, and cash flow. If you’re still chasing invoices via Outlook reminders or spreadsheets, you’re not alone. Many SMEs using Xero handle credit control manually, despite the cost. Tools like Chaser for Xero are designed to take that burden off your hands; automating follow-ups, highlighting credit risks, and making it easier for customers to pay.
At Hyphen Digital, we write about Xero-connected apps to help SMEs make better tech decisions. We’re completely vendor-neutral, no affiliate links, no commissions. Just honest insights from a team that lives and breathes Xero.
The Real Cost of Late Payments
When chasing invoices stays manual or inconsistent, several things start to slip: team productivity, forecasting accuracy, and in some cases, customer relationships. While a couple of overdue payments might feel manageable, the cumulative effect can stall growth and introduce unnecessary financial risk, especially if you’re offering credit terms without real visibility into payment behaviour.
We break this down further in our step-by-step guide to choosing software, where we explore how operational pain points often stem from mismatched or underutilised tools
What Chaser Does
Chaser is an accounts receivable (AR) automation tool built specifically for businesses using Xero. It connects directly to your Xero account and automates invoice reminders through multiple channels: email, SMS, phone, and even posted letters.
Beyond reminders, it introduces tools like:
- Payment Predictor – Identify customer invoices at risk of late payment
- Payer Rating – Find out which customers are most likely to pay you late, and who you should follow up with first
- Credit Monitoring – Reduce the risk of extending credit to customers who may default on payments, and improve and protect your cash flow
- Payment Portal – A self-service space where customers can view and pay invoices online
These features are especially helpful for businesses managing high invoice volumes or whose finance teams are already stretched.
Why Xero Users Might Explore It
Xero’s native reminders cover the basics, but they aren’t designed for complex AR workflows. Chaser for Xero offers more control over tone, timing, and escalation, plus visibility into who you’re actually offering credit to. It helps businesses move from reactive chasing to proactive credit control.
If you’re already considering how AR tools fit into your wider Xero app implementation, it’s worth viewing Chaser as one part of a broader cash flow strategy.
Who It’s Best Suited To
We typically see Chaser used by B2B SMEs across professional services, construction, wholesale, and agency sectors. Most are confident Xero users, but struggling to manage credit control at scale.
It’s particularly useful for finance managers, accountants and bookkeepers looking to reduce debtor days without adding internal admin overhead. If your business is sending more than a handful of invoices each week and follow-ups are inconsistent, it could be a helpful tool to explore.
Key Features to Know About
- Automated multi-channel reminders
Schedule and send follow-ups via email, SMS, phone, or post. Helps maintain consistency and tone.
- Payment Predictor & Payer Rating
Based on historical payment data and credit scores, these tools help assess risk before offering terms. - Credit checks & monitoring
Flag customers with poor credit or erratic payment histories using data drawn from credit bureaus. - Self-service Payment Portal
Offers a professional, frictionless experience for customers to pay all invoices in one place. - AI-optimised chase timing
Learns when customers are most likely to engage with reminders, based on real usage patterns. - Two-way Xero sync
Invoices, payments, contacts, and notes are kept fully in sync between Chaser and Xero.
How It Integrates with Xero
Integration is simple: Chaser connects via the Xero App Store and can be live within minutes. Once connected, it pulls customer records, invoices, payments, and credit notes from Xero hourly (or on demand). When customers pay via the Payment Portal, those payments are auto-reconciled in Xero.
Credit risk data, such as Payer Ratings and Payment Predictor scores, are tied to individual customer records, giving you a more complete picture of who you’re extending credit to.
Reported Outcomes from Users
Chaser users have reported a variety of time and cash flow improvements, including:
- 3 days faster average payment times
- 38-day reduction in debtor days in some cases
- 15+ hours saved per week on manual AR tasks
- £15,000+ recovered in previously written-off invoices
These outcomes will vary depending on your process maturity and customer base. But overall, it’s the structure, consistency, and insight that users tend to value most.
What You Might Not Expect
The automation is often what catches people’s attention. But what users tend to appreciate most over time is the visibility Chaser brings. Payer Rating and Payment Predictor help you identify risk early, often before an invoice is even sent.
This flips the usual reactive AR process on its head. Rather than only acting once a payment is overdue, Chaser allows finance teams to be more selective, informed, and intentional with their terms.
Where It Fits in a Typical Workflow
Chaser doesn’t replace your finance team. It gives them more capacity and control. You still raise invoices in Xero as normal. Chaser then automates the follow-up process, tracks customer behaviour, and handles reconciliation when payments come in.
If you’re reviewing your wider workflow, we also recommend checking out our recent write-ups on tools like AppVentory and ApprovalMax, which can complement Chaser in automating other finance processes within the Xero ecosystem.
Our Take
For SMEs with growing receivables, Chaser is a worthwhile consideration. That said, it’s not for everyone. If your customers mostly pay upfront, or your AR volume is low, you may not need this level of automation.
But for businesses where late payments are common, or where internal capacity is stretched, Chaser for Xero can help turn AR from a reactive admin task into a more predictable, strategic function. It’s most effective when paired with clean Xero data and a clear internal process.
Thinking About Chaser?
At Hyphen Digital, we help SMEs and accountants make better decisions about which tools to use in the Xero ecosystem. If you’re considering Chaser, or any AR automation tool, we can help you assess whether it fits your business, your clients, and your current processes.
Read more about our Advisory, Implementation, Support, Training and Migration services, or book a free consultation
