Successful debt negotiators always enter a negotiation with a clear understanding of what they wish to accomplish - namely a promise to pay from the debtor with specifics regarding when the payment will occur and the amount to be paid. While the goal is to collect the full amount, often this is not possible and thus you need to negotiate a payment with the debtor that suits both parties. Negotiating with debtors can be a laborious time consuming task especially when working with debtors who are unable or unwilling to repay their debt. To achieve your ultimate goal and get the debtor to repay his/her debt it is important that you know how to get the debtor to commit to a promise to pay.

Stage 1: Preparation

During this stage it is essential that you fully prepare for your negotiation with the debtor. Set clear goals for what you would like to achieve during your negotiation and a plan for how to achieve it. Gather all the information you have on the debtor including their payment history and the exact outstanding amount. Establish the amount you would like to get the debtor to pay should they not be able to repay the full amount, but also make sure you understand the debtor’s actual ability to pay so you know what their limitations are. It is likewise important that you develop responses for possible excuses the debtor may present and examine past excuses that may have been used for non-payment. Also ensure you understand your leverage and how much influence or control you have over the situation. In other words determine what you could say to the debtor to influence his/her decision to pay. This could be anything from possible legal avenues at your disposal to denying the debtor future credit or mentioning the negative reflection the missed payment will have on their credit record. You also need to decide on the logistics of your negotiation such as when would be the best time to contact the debtor.

Stage 2: Negotiations

Once you are fully prepared you can contact the debtor to begin the negotiations. Remember that the goal of negotiations is to reach a mutually agreed upon decision of when and how much the debtor will pay. The process often requires a measure of compromise from both parties and thus it is important that you have a predetermined idea of the minimum amount or latest time you are willing to agree on for payment. Here are a few tips used to secure a promise to pay:

• Ask the right questions at the right time

From the research and preparation work you conducted prior to contacting the debtor ask questions pertaining to their account and expected payment. Also inform them of possible consequences should payment not be met. The key is to ask these questions at the right time – wait for the client to be relaxed in the conversation before you mention what your requirements are.

• Be willing to compromise

Be prepared to be flexible on the outcome and change your position as the negotiation progresses. Make sure that you have prepared alternatives regarding payment should the debtor make you an unexpected offer. Also try not to accept the first offer the debtor makes – always see if you can encourage them to pay a little more before you accept.

• Be patient yet persistent

Although it may often feel like you are not getting anywhere – continue pursuing the issue until it is resolved. However, do not be too hasty or anxious to get the debtor to commit – it is important that they feel as though they have made the decision to pay themselves and were not forced into it. Also always maintain good customer service principles and be polite and respectful throughout the negotiation.

• Do not become emotionally involved

Often the reason a debtor has not paid is because he/she has personal issues which they present as a reason for their non-payment. Be empathetic but do not become emotionally involved. Keep yourself focused on the end goal to get the debtor to make a promise to pay.

• Confirm your agreement

At the end of a negotiation always recap exactly what was agreed to so there aren’t any misunderstandings. Repeat the amount and date of payment agreed to and all details pertaining to how payment will be made. This includes all details pertaining to the amount to be paid, payment date and payment method. Make sure the debtor has all the details they need to make the payment so that this cannot be used as an excuse later on.

Successful debt negotiation is key to the success of any credit provider and it is vital that you equip yourself with the necessary skills to successfully receive a promise to pay from debtors.

To learn more about negotiating payments with debtors contact Compuscan Academy to enrol for the course ‘Effective Debt Collection Strategies’. You can contact Compuscan Academy on 021 888 6000 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .