Payment plan agreement template
An instalment schedule for an overdue invoice or large purchase between two businesses, with the debt acknowledged. A sample contract you can read in full, edit in QuoteBill and sign online with a secure link.
Sample — review with a lawyer · Simple electronic signature with an audit trail
Who it is for
For a business that is owed money by another business, for an overdue invoice or a large purchase, and agrees to be paid in instalments on fixed dates, with consequences if an instalment is missed.
For debts between businesses. Credit to consumers is subject to rules this sample does not cover.
What it covers
13 clauses, in this order. Each one is in the sample text below, and you can edit, remove or add clauses before you send.
1. Purpose
What the agreement is for: the Debtor pays an amount it owes the Creditor in instalments, so the Creditor receives the full amount over the agreed period and the Debtor can plan its payments.
2. Acknowledgement of the debt
Blanks for the amount, the date and the invoices or contract it comes from. The Debtor confirms the debt is owed and due and has no objections to it, apart from any deductions written in a blank.
3. Instalment schedule
A set number of instalments, each with amount and due date in the price schedule, with blanks for the first and last. Together they add up to the debt plus any interest and costs. Reminders are optional.
4. Payment method and allocation
Each instalment is paid by bank transfer with a reference so it arrives by the due date; a payment counts when credited. Payments go first to costs, then to any interest, then to the oldest part of the debt.
5. Interest
No interest while instalments are paid on time, unless a rate is written in the blank. With a rate, interest runs daily on the balance and is paid with the instalments. Interest the law allows on late amounts is unaffected.
6. Missed instalment
If an instalment is a set number of days late, the Creditor may remind and set a further period. If that passes unpaid, or a set number of instalments in a row are missed, the whole balance falls due at once and may be pursued.
7. Early repayment
The Debtor may pay any instalment early or clear the whole balance at any time without penalty; interest, if any, stops at the day of payment. The Creditor confirms when the debt is fully paid.
8. Costs
Each side bears its own costs of the agreement. Reasonable reminder and collection costs caused by a missed instalment are borne by the Debtor as far as the law allows and added to the balance.
9. No waiver of rights
Accepting instalments gives up no right or claim and reduces the debt only where the agreement says so. Accepting a late or partial payment does not waive timely payment of the rest. Security stays in force until paid in full.
10. Relationship to the original contract
The invoices or contract behind the debt stay in force; this agreement only changes when and how the debt is paid and does not replace it. If the plan ends because an instalment is missed, the original claims continue for the balance.
11. Changes in circumstances
The Debtor warns the Creditor without delay if it foresees missing an instalment, and the sides talk in good faith about adjusting the plan. A changed plan counts only if both agree in writing or electronically.
12. Term
The agreement ends when debt, interest and costs are paid in full, or earlier if the whole balance has fallen due after a missed instalment. The sides are independent businesses with no relationship beyond this payment.
13. Governing law and disputes
The law you name applies. The sides first try to settle a dispute in good faith, and otherwise the courts you name decide.
A price schedule (items, quantities and prices) is part of this contract. It starts empty, in your currency, and the clauses on fees and payment point to it.
The sample text
The whole sample, as QuoteBill starts it. Text in double square brackets, like [[10]], is a blank to fill in or check, and QuoteBill does not let you send a contract while one is left. The clause text is written in English, Korean, Japanese and German; in other languages a contract starts in English for you to translate.
Read the sample text
Payment Plan Agreement
Parties: Creditor · Debtor
1. Purpose
This agreement sets out how the Debtor pays the Creditor an amount it owes in instalments, so that the Creditor receives the full amount over the agreed period and the Debtor can plan its payments.
2. Acknowledgement of the debt
The Debtor acknowledges that it owes the Creditor [[Amount and currency]] (the “Debt”) as of [[Date]] under [[Invoice numbers, contract or purchase the Debt arises from]], that the Debt is due, and that it has no objections or counterclaims against it, except: [[none / list any agreed deductions]]
The Debt includes [[no / the following]] late-payment charges accrued before this agreement.
3. Instalment schedule
The Debtor pays the Debt in [[6]] instalments as listed in the price schedule of this contract, each with its amount and due date; the first instalment of [[Amount]] is due on [[Date]] and the last on [[Date]].
The instalments add up to the Debt plus any interest and costs this agreement provides for.
The Creditor may send a reminder before each due date but is not obliged to.
4. Payment method and allocation
The Debtor pays each instalment by bank transfer to the account stated in this contract, quoting [[Reference, e.g. the invoice number]], so that it arrives on or before the due date. A payment is made when the amount is credited to the Creditor’s account.
Payments are applied first to costs, then to interest, if any, and then to the oldest outstanding part of the Debt.
5. Interest
No interest is charged on the Debt during this agreement if the Debtor pays each instalment on time, unless an interest rate is written here: [[none / rate per year]]
Where a rate is written, interest accrues on the outstanding balance from the effective date, is calculated daily and is paid with each instalment or [[with the last instalment]].
Interest that the applicable law allows the Creditor to charge on late amounts remains unaffected.
6. Missed instalment
If an instalment is not received within [[7]] days of its due date, the Creditor may remind the Debtor in writing or in electronic form and set a further period of [[7]] days to pay.
If the Debtor does not pay within that period, or misses [[2]] instalments in a row, the whole outstanding balance of the Debt becomes due at once without further notice, and the Creditor may pursue it by any lawful means, including the rights it had before this agreement.
Instalments already paid are credited against the balance.
7. Early repayment
The Debtor may pay any instalment early or repay the whole outstanding balance at any time without penalty or additional charge. Interest, if any, is then charged only up to the day of payment. The Creditor confirms in writing or in electronic form when the Debt has been paid in full.
8. Costs
Each party bears its own costs of preparing this agreement. Reasonable costs the Creditor incurs because the Debtor misses an instalment, such as reminder fees and collection costs, are borne by the Debtor as far as the applicable law allows and are added to the balance.
9. No waiver of rights
By accepting payment in instalments the Creditor does not give up any right or claim it has against the Debtor, and does not reduce the Debt except as this agreement expressly states. Accepting a late or partial payment does not waive the Creditor’s right to insist on timely payment of the remaining instalments. Any security, guarantee or retention of title for the Debt remains in force until the Debt is paid in full.
10. Relationship to the original contract
The invoices, contract or purchase from which the Debt arises stay in force; this agreement only changes when and how the Debt is paid and does not replace the Debt with a new one. If this agreement ends because of a missed instalment, the Creditor’s claims under the original contract continue for the outstanding balance.
11. Changes in circumstances
The Debtor informs the Creditor without delay if it foresees that it cannot pay an instalment on time, and the parties talk in good faith about adjusting the schedule. A changed schedule is valid only if both parties agree to it in writing or in electronic form. Until then the agreed instalments remain due.
12. Term
This agreement starts on the effective date and ends when the Debt, interest and costs under it have been paid in full, or earlier if the whole balance has become due under the clause on a missed instalment. The parties are independent businesses, and this agreement creates no relationship between them beyond the payment of the Debt.
13. Governing law and disputes
This agreement is governed by the law stated under Governing law. The parties will first try to settle any dispute in good faith. Otherwise the courts stated under Jurisdiction decide, unless mandatory law provides otherwise.
Payment terms
Each instalment by bank transfer to the account stated on the invoice or in this contract, so that it arrives on or before its due date; the first instalment on [[Date]].
Governing law
[[Country or state whose law applies]]
Jurisdiction
[[Courts that decide disputes, e.g. the courts of your city]]
How to use it
Choose the template
Press the button to use this template. If you are not signed in, you first sign in or sign up for free and then come straight back to it.
Start a draft
The new-contract page opens with this template marked. Press its card to create a draft. Your company details fill in Party A, and you fill in the blanks, the other party and, where the template has one, the price schedule.
Send it for signature
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Next steps
Your client opens the link on any device and needs no account. See what the signing looks like on the E-Contracts page, and read which kind of electronic signature is enough for which document.
Already signed? Make the invoice from the signed contract: the parties and the price lines carry over, in full or for a deposit. The guide on turning a quotation into an invoice shows how to review the new draft, its dates and the PDF.
What it is, and what it is not
QuoteBill creates a simple electronic signature with an audit trail. In the EU, the UK, the US and Korea a signature is not denied legal effect only because it is electronic, and in Japan most contracts need no particular form at all. What a simple electronic signature proves in a dispute depends on the evidence behind it, and some documents need another form.
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Some documents need another form. Wills, many real-estate transfers, guarantees and some employment documents must, in some countries, be handwritten, notarised or signed with a qualified signature. The templates are samples, not legal advice: review them with a lawyer.
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