# Payment Plan agreement

> This template is a starting point, not legal advice. Laws and required terms vary by country and state. Have a qualified lawyer review it for your jurisdiction and business before you use it.

Replace everything in [brackets]. Delete clauses that don’t apply and have a lawyer review the result.

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## Parties

Creditor: [Legal name, address, email]
Client: [Legal name, address, email]
Effective date: [Date]

## 1. Amount owed

Total outstanding: [Amount]
Invoices covered: [Invoice numbers and dates]

## 2. Payment schedule

| Instalment | Due date | Amount |
| --- | --- | --- |
| 1 | [Date] | [Amount] |
| 2 | [Date] | [Amount] |
| 3 | [Date] | [Amount] |

## 3. Payment method

[Bank transfer to … / card payment link]

## 4. Missed payments

If an instalment is more than [7] days late, the full remaining balance becomes due immediately [and interest may be charged as allowed by law].

## 5. Ongoing work

[New work is paid in advance / on 7-day terms while this plan is in place.]

## 6. No waiver

Agreeing this plan doesn’t waive the Creditor’s rights under the original agreement if the plan isn’t kept.

## General

- **Entire agreement:** this agreement (and any statements of work under it) is the whole agreement between the parties on its subject.
- **Changes:** changes to this agreement must be in writing and signed by both parties.
- **Notices:** notices are sent to the email addresses above, or as updated in writing.
- **Governing law:** this agreement is governed by the laws of [jurisdiction], and the courts of [jurisdiction] have jurisdiction.

## Signatures

|  | [Party A] | [Party B] |
| --- | --- | --- |
| Name |  |  |
| Title |  |  |
| Signature |  |  |
| Date |  |  |

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## Before you sign it

- [ ] Both parties’ legal names and addresses are correct.
- [ ] Services, deliverables and exclusions are specific.
- [ ] Fees, deposit and payment terms match the proposal.
- [ ] Ownership, confidentiality and liability clauses suit the project.
- [ ] Termination and notice periods are filled in.
- [ ] A lawyer has reviewed the template for your jurisdiction.

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# Example: three-month payment plan

A filled-in plan for a fictional overdue balance.

## Amount owed

Total outstanding: $4,500
Invoices covered: INV-0131 and INV-0138

## Schedule

| Instalment | Due date | Amount |
| --- | --- | --- |
| 1 | 1 July | $1,500 |
| 2 | 1 August | $1,500 |
| 3 | 1 September | $1,500 |

## Missed payments

If an instalment is more than seven days late, the remaining balance becomes due immediately.

## Ongoing work

New work is invoiced on seven-day terms while the plan is in place.

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This template is a starting point, not legal advice. Laws and required terms vary by country and state. Have a qualified lawyer review it for your jurisdiction and business before you use it.

Template by Angelwood — https://angelwood.io/templates