What you'll do
- Weigh the size of a debt against the effort to recover it
- Assess how recoverable a debtor is likely to be
- Factor in the age and documentation of the debt
- Use a free appraisal to sense-check your view
- Decide a clear next step for each account
7 min
Size, age and evidence
Three factors usually drive the decision. The size of the debt sets how much effort is justified. The age matters because, generally, the longer a debt sits, the harder it can be to recover. And the evidence you hold, such as signed terms and proof of delivery, shapes how strong the claim is.
This is general business information, not legal advice. Time limits can apply to recovering debts, so if a debt is old it is worth checking your position.
Work through each debt
- Note the principal amount and any interest or costs owed.
- Check how old the debt is and when it last had activity.
- List the documents you hold to support it.
- Consider what you know about the debtor's situation.
- Estimate the effort and weigh it against the likely return.
- Decide to pursue, hold, or write off, and record why.
A consistent process stops good debts slipping through and bad debts soaking up time.
Sense-check before you commit
If you are unsure, a free debt appraisal gives you an outside view at no cost. Because Merion works on a no recovery, no fee basis, pursuing a debt through us does not add upfront cost, which changes the maths in your favour. You can refer worthwhile debts at merion.com.au/refer-a-debt.
Good to know
- Size, age and evidence are the three factors that matter most
- A consistent process protects good debts and saves time on weak ones
- No recovery, no fee removes the upfront cost from the decision
FAQ
Is a small debt ever worth pursuing?
It can be, especially under no recovery, no fee where there is no upfront cost. A free appraisal can help you decide.
Does the age of a debt really matter?
Yes. Generally, older debts are harder to recover, and time limits can apply, so it is worth acting sooner rather than later.
What if I am still not sure?
Request a free debt appraisal. It gives you a plain-English, no-obligation view before you commit to anything.
Still not sure? Our team is happy to talk it through.