Willingness to pay
The term "willingness to pay" refers to a consumer/debtor's willingness to pay for a particular product or service.
When it comes to debt collection, there are two fundamental factors at play: the debtor's willingness and ability to pay. These two concepts are independent of each other, but both must be present in order for a debt collection process to be successful and for the creditor to get their money.
While ability to pay refers to the debtor's financial ability to pay, willingness to pay refers to the debtor's willingness to pay.
Theoretically, willingness to pay doesn't necessarily have anything to do with whether the debtor has money or not, but in practice the two are often linked.
What affects willingness to pay?
As a debt collection agency, we experience from time to time that a debtor does not have the will to pay their outstanding debt. This can happen if the debtor feels badly treated by the creditor, believes that the creditor has not fulfilled its obligations, or for other fundamental reasons.
The debtor may have the means to pay (ability to pay) but lacks the will to pay.
Opposition
If the debtor has a specific reason for not paying and has complained about your invoice, this is called an objection.
An objection can affect the customer's willingness to pay.
If the objection can be rejected based on clear and obvious reasons, the debt collection process can continue. However, if the objection has substance, the case will not be able to proceed as a debt collection case.
In such cases, it may be necessary to issue a subpoena and prepare a lawsuit.
Read also: Objection in connection with debt collection
Avoid customers with unwillingness to pay
It can be very difficult to avoid unprincipled customers who are unwilling to pay, but there are ways to reduce the risk.
One way to minimize the number of customers unwilling to pay is to ensure a well-documented work description - both of what was delivered and what the customer wanted.
By having documentation of the work performed and the customer's expectations prior to execution, you'll be in a strong position in any arguments and/or later legal proceedings against the customer.
