Collection rate explained
Your collection rate shows how well you're getting paid.
3 min read
What is collection rate?
Collection rate is the percentage of expected payments you've actually received.
Formula: Collection Rate = (Collected ÷ Expected) × 100
Example
If clients owe you £1,000 this month and you've collected £800:
- Collection rate = 80%
What's a good collection rate?
- 90-100% - Excellent! Most clients pay on time
- 70-89% - Good, but room for improvement
- 50-69% - Some clients need more follow-up
- Below 50% - Consider reviewing your processes
How to improve your rate
- Send reminders early - Don't wait until after due date
- Use automatic reminders - Consistent follow-up helps
- Make payment easy - Offer card payments
- Clear communication - Make sure clients know what they owe
Don't be discouraged
If your rate is low, it's often just about setting up good reminder habits. Regular, friendly reminders make a big difference.
Related: How automatic reminders work
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