Payment plan agreement template — written acknowledgment that resets the SoL clock

Variables to fill in

{{provider_name}}

Your business name.

{{customer_name}}

Customer's full legal name (entity name for businesses).

{{outstanding_balance}}

Total amount the customer owes as of the agreement date.

{{installment_amount}}

Amount per scheduled payment.

{{installment_dates}}

Specific dates: '15th of each month' or list each date.

{{first_payment_date}}

Date the first installment is due.

{{final_payment_date}}

Date the final installment is due.

{{governing_state}}

State whose law governs (usually your business's state).

The template

Select all and copy. Replace the {{double-brace}} placeholders with your details.

PAYMENT PLAN AGREEMENT

Date: [DATE]

Between:
{{provider_name}} ("Provider")
and
{{customer_name}} ("Customer")

1. ACKNOWLEDGMENT OF DEBT
Customer acknowledges that, as of the date of this Agreement, Customer owes Provider the sum of {{outstanding_balance}} (the "Outstanding Balance") for goods or services previously provided. Customer further acknowledges that the Outstanding Balance is valid, due, and not subject to any current dispute.

This acknowledgment is intended to constitute a written acknowledgment of debt under the law of {{governing_state}}.

2. PAYMENT SCHEDULE
Customer agrees to pay the Outstanding Balance to Provider in installments as follows:

- Installment amount: {{installment_amount}}
- Installment frequency: {{installment_dates}}
- First payment due: {{first_payment_date}}
- Final payment due: {{final_payment_date}}

Payments will be made by [check / ACH / credit card] payable to {{provider_name}} at [address or payment URL].

3. APPLICATION OF PAYMENTS
Each installment will be applied first to any accrued interest or late fees, then to the principal Outstanding Balance.

4. DEFAULT
Customer is in default if any installment is more than ten (10) days past its scheduled date. Upon default:
(a) the entire remaining Outstanding Balance becomes immediately due and payable in full;
(b) Provider may pursue any and all legal remedies available under the law of {{governing_state}}; and
(c) Customer agrees to pay Provider's reasonable costs of collection, including reasonable attorney's fees, to the extent permitted by law.

5. NO RESOLUTION OF DISPUTES
This Agreement does not resolve any dispute Customer may raise about the underlying goods or services. Any such dispute must be raised in writing within ten (10) days of the date of this Agreement; otherwise, Customer waives the right to dispute the Outstanding Balance.

6. GOVERNING LAW
This Agreement is governed by the law of {{governing_state}}, without regard to conflict-of-law principles.

7. ENTIRE AGREEMENT
This document constitutes the entire agreement between the parties regarding the Outstanding Balance and supersedes any prior payment terms or invoices.

ACKNOWLEDGED AND AGREED:

Provider: __________________________  Date: __________
Print: ____________________________

Customer: __________________________  Date: __________
Print: ____________________________
Title (if business): _______________

---
This template is general-purpose educational content, not legal advice. State law varies and attorney review is recommended before use. Syntharra is not your attorney.

Payment plan signed? Connect QuickBooks — Syntharra calls if a scheduled payment is missed.

Browse more: all templates · answers · glossary