.:. COLLECTION EFFECTIVENESS INDEX

Summary
The Collection Effectiveness Index (CEI) is a metric that evaluates the effectiveness of a company or individual’s collection efforts over time. The Index, developed by Dr. Venkat Srinivasan and the Credit Research Foundation, is used by many organizations to help assess the strength and quality of their receivable management processes and credit policies. The closer the Index percentage is to 100 (without exceeding 100%) the more effective the collection effort.

The formula for calculating CEI is as follows:

Beginning Receivables+Credit Sales - Ending Total Receivables Beginning Receivables+Credit Sales - Current Total Receivables

x 100

Conditions
Polysect Corporation is not responsible for the use and interpretation of this Index. A more detailed evaluation must be performed to support any formal review of your credit policies or receivable management processes.Polysect Corporation does NOT retain all data submitted for calculation of the Index. The user agrees not to re-produce and/or re-use the Index worksheet data for any commercial purposes.

AGREE & PROCEED»