Payment Plan Agreement Generator

30 July 2026

Dear [Customer name]

RE: PAYMENT ARRANGEMENT — [invoice / account reference]

Thank you for contacting us to arrange payment of your outstanding account of $4,000.00. This letter confirms the arrangement we have agreed.

Agreed arrangement
• Total amount payable: $4,000.00
• Instalments: $500.00, paid fortnightly
• Number of payments: 8
• First payment: [first payment date]
• Expected final payment: [final payment date]

Please make each payment to:
[your payment details]
Please include the reference [invoice / account reference] with every payment.

This arrangement is made in good faith on the basis that each payment is made in full and on time. If a payment is missed and not brought up to date promptly, the arrangement may lapse and the full outstanding balance may again become due, without further notice.

If your circumstances change and you are unable to keep to this arrangement, please contact us before a payment is due so we can discuss it.

Please reply to confirm you accept these terms.

Yours sincerely

[Your name]
[Your business name]

Why put a payment plan in writing

Agreeing a payment arrangement is often the fastest way to recover an overdue account without damaging the relationship — but a verbal agreement is easy to misremember and hard to enforce. A short written confirmation removes the ambiguity: both sides know exactly what was agreed, when payments are due, and what happens if the plan isn't kept.

Spell out the schedule

Record the total, the instalment amount and frequency, and the first and final payment dates. This tool works out the number of payments and the final date for you from the figures you enter.

Include a missed-payment clause

The most important line is what happens if a payment is missed. Making clear that the full balance can again become due keeps the arrangement credible and preserves your position if it isn't honoured.

This is a template for confirming an agreed arrangement — general information for Australian businesses, not legal or financial advice. Adapt it to your circumstances and terms of trade. Nothing entered here is sent, stored or transmitted; the tool runs entirely in your browser.