A written payment plan agreement makes sure you and your customer agree on the same numbers before the first payment. Below is a plain-English template for service businesses. Copy it, adapt it and have it reviewed for where you operate.
This template is general information, not legal advice. Laws on consumer agreements, late fees and interest vary by location.
The template
Payment Plan Agreement
This agreement is between [Business name] (“we”) and [Customer name] (“you”), dated [date].
1. What you’re buying. [Describe the program, service or project.]
2. Price. The total price is [amount and currency]. This includes any plan fee. No interest is charged.
3. Deposit. You’ll pay a deposit of [amount] on [date]. The deposit is [refundable / non-refundable] [conditions].
4. Installments. You’ll pay the remaining [amount] in [number] installments:
| Installment | Due date | Amount |
|---|---|---|
| 1 | [date] | [amount] |
| 2 | [date] | [amount] |
| … | … | … |
| Total | [remaining amount] |
5. How you’ll pay. We’ll send an invoice for each installment on or before its due date. Payment is due within [number] days of the invoice.
6. Late or missed payments. If a payment is more than [number] days late, we may [pause the service / charge a late fee of amount, where permitted] until your account is current. We’ll contact you before taking any action.
7. Paying early. You may pay the remaining balance at any time [with no penalty].
8. Cancellation and refunds. [Explain when the customer can cancel, what they still owe for work delivered, and what will be refunded.]
9. Changes. Any change to this schedule must be agreed by both of us in writing. Payments already made won’t change.
10. Acceptance. By signing or accepting electronically, you agree to this schedule and these terms.
[Business name, representative and date] · [Customer name and date]
Clauses worth thinking about
- Deposit refunds. Be explicit. A non-refundable deposit that covers real setup cost is easier to defend.
- Late fees. Many places limit them, and some treat them as finance charges. Check before you add one.
- Interest. Charging interest can make a plan a credit agreement with extra disclosure rules. Most service businesses don’t charge it.
- Service pauses. Pausing delivery after a missed payment is often clearer and fairer than a fee.
- Exact amounts. Make sure the installments add up to the total to the cent. The calculator handles uneven splits.
Getting it accepted
Email a PDF, use an e-signature tool, or use payment plan software that records acceptance. In Cadence, your customer opens a private link, reviews the exact schedule and accepts that version before the first invoice is issued. Accepted terms can’t be edited silently afterward.