Executive answer
Recovery decisions should compare probability, expected amount, time, cost and strategic value.
01Documentation
02Process
03Approval
04Commercial
05Financial
06Behavioural
Old does not automatically mean recoverable
A legacy receivable may be valid and collectible, disputed, economically uneconomic to pursue, tied to a closed business, or require settlement rather than continued reminders.
Recovery Viability Assessment
TraceabilityCan the debtor and decision-makers be located?
Debt validityIs the current outstanding supported?
DocumentationCan the claim be evidenced?
AbilityIs there capacity to pay?
IntentIs non-payment strategic?
DisputeWhat must be resolved?
TimeHow long is a realistic route?
CostWhat commercial/legal/management cost will be incurred?
Recovery economics
Expected realization should be considered against probability, time and cost. A professional outcome can be “recover”, “settle”, “escalate” or “close”, not automatically “chase forever”.
Institutional relevance
The same framework is critical before purchasing or insuring receivables, because face value is not realizable value.