Free AR resources / template

Payment Plan Agreement Template

A documented payment arrangement helps an AR team offer flexibility without losing clarity. Use this agreement template to set out the outstanding balance, instalment dates and what happens when payments are missed.

How to use this resource

Verify the balance, original invoice references and any agreed credits.
Set realistic payment amounts and dates with the customer.
Download the PDF, fill in the schedule, payment method and any applicable interest or default clauses.
Have both parties review and sign the agreement, then monitor each instalment.

What makes a useful repayment agreement

A practical repayment agreement records the parties, the original debt, specific instalment amounts and dates, payment instructions, and the consequences of missed payments.

Payment plans work best when the schedule matches the customer's ability to pay and your business can reliably track whether each payment arrives.

Documenting changes and defaults

If the customer needs to adjust a due date or instalment, record the change in writing and keep both parties' confirmation.

Interest, additional fees, acceleration clauses and enforcement options may be restricted by applicable law. This template requires review before use.

Frequently asked questions

Is this a binding payment-plan contract?

It is a template that can be adapted into an agreement, but enforceability depends on the completed terms and applicable law.

Can I include interest or late fees?

Only when permitted by your agreement and relevant law. State any rate and calculation method clearly.

Should both parties sign it?

Written signatures or other legally valid acceptance can provide clarity and evidence of the agreed terms.

More resources

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