Usually means: Capacity to fulfill financial obligations.
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We found 8 dictionaries that define the word ability to pay:

General (2 matching dictionaries)
  1. ability to pay: Wiktionary
  2. ability to pay: Dictionary.com

Business (6 matching dictionaries)
  1. MoneyGlossary.com (No longer online)
  2. INVESTORWORDS (No longer online)
  3. MSN Money (No longer online)
  4. Ability to Pay: Investopedia
  5. Ability to Pay: Financial dictionary
  6. BusinessDictionary.com (No longer online)

Definitions from Wiktionary (ability to pay)

noun:  (taxation, often attributive) An individual's level of wealth or income, as a measure of the tax rate they can afford to pay.

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