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Payment Plan Agreement: Free Template

Agree how an unpaid debt will be paid in instalments: down payment, amounts, dates, late fee and what happens on default.

Parties

Details

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What to put in a payment plan

A payment plan agreement lets a customer pay an overdue amount in instalments instead of at once. The creditor gets a written promise and a schedule; the debtor gets time and, in return, a clear deal that stops collection while the plan is kept.

What to put in a payment plan

  1. The debt: how much and what for (invoice numbers)
  2. A down payment, if any
  3. Number of instalments, the amount and how often
  4. The first due date and payment method
  5. Late fee and when the full balance becomes due
  6. Early payoff without penalty
  7. That the debt is settled once paid

Example schedule

DebtDown paymentInstalmentsEach
4,8008008 monthly500

Before offering a plan, send a firm reminder with the payment reminder email generator. For a single amount owed, an IOU may be enough.

Download a PDF or an editable Word file, or print it. Your draft stays in this browser only; nothing is uploaded to our servers.

Features

  • Debt and down payment
  • Instalments and frequency
  • Start date
  • Late fee and default
  • Early payoff allowed
  • PDF, Word and print

Frequently asked questions

Can I charge interest on a payment plan?

You can, if the law allows and the agreement says so. Many small business plans use a late fee instead.

What happens if the debtor misses a payment?

The agreement sets it: usually a late fee, and after a set number of days the whole balance becomes due.

Should both parties sign?

Yes. Both sign and date it, and each keeps a copy.

Is this legal advice?

No. It is a sample format to save you time. For a large amount, property or anything unusual, have a lawyer review the final text.

Is it free?

Yes. No sign up and no watermark. Download a PDF or Word file, or print it, as often as you need.

Is my information saved?

Only in your own browser, so you can come back to the draft. Nothing is uploaded to our servers.

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