Debt Collections: Ability to Pay vs. Willingness to Pay

Contrary to what most people think, determining the collectability of the file is as simple as determining the ability and willingness.

Many people have the ability to pay, but simply lack the will. Other times you may be extremely willing but your bank account suggests a different story.

Most collection firms will try to tell you that collecting requires an amazing skill set by a clairvoyant person, born and raised in the collection industry. This is simply not true. Yes, being a good communicator, having good intuition, having experience and above all professional, is essential. But at the end of the day, when no one is looking, an experienced collector knows how to determine capacity and willingness.

Those who have the ability to pay and are unwilling require a sense of urgency and an extreme amount of leverage. Leverage is key. Providing an economic reason to pay that is in the best interest of the debtor is often the best way to collect.

When the individual has all the will in the world and no finances, this will pose a somewhat different challenge. Listening is key. These files are not necessarily non-collectible, they simply require more patience and a willingness on the part of the collector and client to take less over a longer period of time.

Knowing when to work with the debtor and when to draw a line in the sand is paramount.

Asking probing questions and listening to the answer will help determine ability and willingness. Although in most cases the debtor will tell you his excuse immediately. Many times you were not the only person asking for money. You can almost guarantee that if you are calling several others are also calling, how will your call differ from the others before you?