Collection Efficiency

Collection Efficiency Definition: Collection Efficiency Ratio (CER) is the core KPI measuring a collection team's effectiveness. It is the percentage formula of total funds actually recovered divided by the total funds that were due in a specific period.

Why it matters in Debt Collection

• Calculated as: (Total Amount Collected / Total Amount Billed) × 100.
• High collection efficiency represents stellar portfolio health.
• Most AI-driven platforms guarantee a tangible lift in CER within 90 days.