Collection rate explained

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:

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