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Payment Plan Agreement Template

What is a payment plan agreement?

A payment plan agreement lets a customer or debtor pay an outstanding balance in instalments, with dates, amounts and what happens if a payment is missed.

When you need one

  • Customers who can't pay an invoice in full
  • Settling an overdue debt

Key clauses included

  • Outstanding balance
  • Instalment schedule
  • Payment method
  • Missed payments
  • Acknowledgment of debt

What the template covers

  1. Acknowledgment of Debt
  2. Payment Schedule
  3. Payment Method
  4. Missed Payments
  5. Early Payment
  6. No Further Action
  7. General
  8. Governing Law and Disputes

How to use it

  1. Buy and download the editable Word file.
  2. Fill in the brackets: names, dates, fees, scope and governing law. Delete options that don't apply.
  3. Check it against local law, and have a lawyer review it for high-value deals.
  4. Sign it on paper or with any e-signature tool.

Frequently asked questions

What format is the template in?

You get an editable Microsoft Word (.docx) file that also opens in Google Docs, Pages and LibreOffice.

Can I use this template in my country?

The templates are written for international use with placeholders for governing law and local details. Contract law differs between countries and states, so check the final document against local law, especially for employment and consumer contracts.

Is this legal advice?

No. A template is a starting point, not advice on your situation. For high-value or unusual deals, have a lawyer review the completed document.

How do I receive the file?

Right after payment you are taken to a download page, and PayPal emails you a receipt. Keep the download page link to download the file again.

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