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Collection effectiveness index: Telling the entire credit and collections story

Defining Collection Effectiveness Index (CEI) is a calculation of a company’s ability to retrieve accounts receivable (AR) from their customers. In other words, CEI compares the amount collected in a given time period to the amount of receivables available for collection. A CEI near 80% or above indicates a highly effective collections process, while a CEI near 50% and below is considered low and should be further evaluated.

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