The short answer: a debt is usually worth pursuing when your evidence is strong, the debtor appears able to pay, the balance meaningfully exceeds the cost and uncertainty of collection, and no unresolved dispute undermines the claim. This worksheet helps you weigh those factors honestly — it is a thinking tool, not a recovery score.
Chasing an uncollectable account is expensive in two ways: the direct cost of the effort, and the management attention it absorbs. Walking through the six factors below takes twenty minutes and routinely saves weeks.
The six factors
1. The balance
Start with the number, then immediately net it down: subtract any partial payments already received and any discount you would plausibly accept. What remains is the realistic claim — the figure every later decision should be measured against.
2. The strength of your evidence
Rate your file: contract or PO signed? Invoice clean? Delivery or acceptance provable? Communication trail intact? Strong evidence supports faster resolution and gives a collector or attorney something to work with. Weak evidence means the first serious challenge will expose the gap — see the documents checklist.
3. Open disputes
An unresolved dispute about scope, quality, or delivery caps what any collection effort can achieve. If the dispute has merit, the balance itself may shrink. If it does not, documenting why usually restores the claim's strength.
4. Estimated cost of recovery
Compare the realistic claim against the cost of the next step: internal staff time, agency fees on recovery, or attorney time if it goes legal. Percentages vary by provider and structure — our fee guide explains what to ask before signing so you can model the numbers with real figures rather than guesses.
5. Debtor responsiveness and apparent ability to pay
A debtor who responds, acknowledges the debt, and proposes terms is a different proposition from one who has vanished — and both differ from a business that acknowledges everything but is visibly insolvent. Public signals (still operating, still billing customers, made a partial payment) matter more than speculation. We cannot advise pretending to know what you do not: inability to pay is information, not a moral judgment.
6. Your tolerance for uncertainty and time
Recovery takes time whose length nobody can promise. If the balance is small relative to the management attention required, closing the account and writing it down can be the rational business choice — loss carried forward costs less than distraction.
The worksheet
| Factor | Strong | Weak |
|---|---|---|
| Balance vs. cost | Balance comfortably exceeds estimated recovery cost | Balance is small relative to effort and fees |
| Evidence | Contract + invoice + proof of delivery complete | Missing agreement, proof, or clear terms |
| Disputes | None, or resolved with documentation | Active quality/scope dispute without records |
| Debtor | Engaged, operating, partial payments possible | Unreachable or apparently insolvent |
| Responsiveness trend | Was paying, stalled recently | Never responded or repeated broken promises |
| Your bandwidth | Staff time available, or low-cost external option | No capacity; every hour spent hurts core business |
Worked example (hypothetical)
A design agency is owed $9,500, 75 days past due. Evidence: signed SOW, invoice, approval emails — complete. No dispute; the client stopped replying after two promises. Estimated internal cost to continue: several more hours of chasing with no movement. The account scores strong on evidence, mixed on responsiveness, and reasonable on economics — which points toward placing it externally rather than continuing reminders that have already failed.
Contrast a $3,000 balance with no signed agreement, verbal scope changes, and a live quality dispute: evidence is weak and the dispute caps the claim. The rational next move is reconstructing the agreement record — not escalation.
Next steps
If your worksheet lands on "pursue," the timing question follows: when to send a business debt to collections. If you would like a professional opinion on scope, submit the account and we will review what you have.