# Customer Payment-Plan Agreement

A signed payment plan collects an aging invoice that a phone promise never will. When a customer owes you $11,300 and cannot pay it in one check, your two real options are a plan you can hold them to or an invoice that ages another 60 days. A plan gets cash in the door now, converts a vague "soon" into dated amounts, and creates a signed record that a court or a collector can act on if it comes to that.

Use it when a customer acknowledges the debt but needs time, which is most of the accounts that reach 60 and 90 days. Do not use it to reward a stall: get a down payment the day it is signed, keep the schedule short, and stop the friendly calls only once the signature and the first payment are in hand.

The template is below, followed by a filled example for Copperline Mechanical and **Palmer Logistics, invoice #2043, $11,300**, the account that had aged to 96 days. This is a plain-language starting point for general education, not a finished legal document, and it is one to have your attorney review and adapt before you ever send it.

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## The template

> **Payment Plan Agreement**
>
> This agreement is made on [date] between [your business name] ("Provider") and [customer legal name] ("Customer") regarding the unpaid balance described below.
>
> **1. Balance.** Customer owes Provider [total balance] for [invoice numbers and description], which is past due. Customer acknowledges the debt is owed and not disputed.
>
> **2. Payment schedule.** Customer will pay the balance as follows: [down payment] due at signing, then [number] payments of [amount] on the [day] of each month, beginning [first date], until the balance is paid in full on or before [final date].
>
> **3. Method.** Payments will be made by [ACH / card on file / check]. Customer authorizes Provider to [charge the card / draw the ACH] on each scheduled date.
>
> **4. Late and default.** A payment more than [number] days late is a default. On default, the full remaining balance becomes due at once, and [late-fee terms] and reasonable collection costs apply to the extent permitted by law.
>
> **5. Continued service.** [State whether new work proceeds during the plan, and on what terms.]
>
> **6. Entire agreement.** This is the entire agreement on this balance and replaces prior payment terms for these invoices only. It does not waive Provider's rights on the original invoices except as performed here.
>
> Provider: ______________________  Date: ________
> Customer (signature and title): ______________________  Date: ________

## The filled example

> **Payment Plan Agreement**
>
> This agreement is made on June 15, 2026 between Copperline Mechanical ("Provider") and Palmer Logistics, LLC ("Customer") regarding the unpaid balance described below.
>
> **1. Balance.** Customer owes Provider $11,300 for invoice #2043 (rooftop unit replacement and duct repair, completed March 8, 2026), which is past due. Customer acknowledges the debt is owed and not disputed.
>
> **2. Payment schedule.** Customer will pay as follows: $2,300 due at signing, then three payments of $3,000 on the 1st of each month, beginning July 1, 2026, with the final payment on September 1, 2026, paying the $11,300 in full.
>
> **3. Method.** Payments will be made by ACH. Customer authorizes Copperline Mechanical to draw each scheduled payment on its due date from the account on file.
>
> **4. Late and default.** A payment more than 5 days late is a default. On default, the full remaining balance becomes due at once, a 1.5% monthly late charge applies to the unpaid balance, and reasonable collection costs, including attorney fees, apply to the extent permitted by law.
>
> **5. Continued service.** New or emergency work during the plan is billed due-on-receipt with a card on file and is separate from this balance.
>
> **6. Entire agreement.** This is the entire agreement on this balance and replaces prior payment terms for invoice #2043 only.
>
> Provider: ______________________  Date: ________
> Customer (signature and title): ______________________  Date: ________

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## How to use it

- **Get the down payment before the ink dries.** The $2,300 at signing does two things: it puts cash in the account today, and it proves the customer is serious. A plan with no money down is a delay with a signature.
- **Automate the schedule.** Set the ACH or card-on-file draws for all four dates at once, so you are not chasing the same account every month. The point of a plan is to stop spending your time on it.
- **The default clause is the plan's teeth.** The acceleration line, which makes the whole balance due the moment a payment is missed, is what turns a soft plan into a firm one. It is also the clause most governed by law, so it is the one to have your attorney set for your state.

<div class="disclaimer">
<strong>Plain terms:</strong> this is general business education, not legal, accounting, or tax advice, and it makes no promise about your results. A signed payment-plan agreement can create binding legal obligations, and the rules for acceleration clauses, late charges, collection-cost recovery, ACH and card authorization, and enforceability vary by state and by your contract. The names, dates, and amounts here are an illustration. Do not use this document as-is: have a licensed attorney who knows your state review and adapt it before you send it to a customer, and confirm any fee or interest terms with your CPA.
</div>
