The use of Short Message Service (“SMS”) or text messaging is ubiquitous in our society. Text messaging is used extensively for personal communication, and has become a major factor in business communication as well. The growth in business use is the result of people simply employing the communication tool they use in their personal lives. Automated text messaging has proven to be a more effective business communication tool than email, phone calls and letters in many circumstances.

Automated SMS has proven effective in accounts receivable collection. Many companies are using automated text messaging to improve their collections and increase cash flow. Here are 5 reasons you should consider SMS automation in your collection process.


If you want to reach your customers and get a response you need to use text messaging, because it has become the communication channel of choice for many business people. The overwhelming majority of text messages are read, and a very high percentage are responded to.

You can send emails but the majority are not opened. Of the few emails that are opened, few are responded to.

Phone calls are less effective than emails; few are answered or calls returned. Leaving voice mails is often futile due to full mailboxes.

Letters are the least effective in eliciting a response from customers. If customers won’t take the time to read emails or answer phone calls, it is highly unlikely that they will read a letter and reply.

With automation, SMS can help to increase your response rates even further.


With SMS automation you can send reminder text messages based on established criteria such as invoice due date or days past due. Text messages can also include copies of invoices, account statements and other documents.


Links to online self-service payment options can be included with automated text messages. Give your customers the opportunity to pay on the spot when they read your text message. Otherwise, you may lose their attention and need to send another reminder text.


SMS automation can save your collection staff a lot of tedious, time consuming manual activities needed to support collection programs based on traditional forms of communication. While text messaging will probably never fully replace traditional communication channels, it can free up a lot of time which can be spent on more important collection activities.


Automated SMS is less costly than traditional communication methods. Letters, phone calls and email are more costly than automated SMS; especially when you consider the low response rates.

These are all great reasons for you to consider SMS automation in your collection process.

Automated accounts receivable and collection software with SMS automation capability is available from Lockstep Collect, a leader in cloud-based and premises-based software solutions made specifically for businesses selling on credit terms.

If you would like to learn more about how you can benefit from automated SMS text messaging, please contact Lockstep Collect at