Repayment agreements

Consider using a repayment agreement when you have sent Payment reminders, the customer accepts that money is owed and is willing to make arrangements for the debt to be repaid.

Offering to enter into a repayment agreement can be a useful way of avoiding legal action. Consider taking this proactive step to avoid someone to whom you owe money taking action against you.

You can consider recording your offer to pay off the debt by regular fixed instalments using a Letter proposing payment in instalments.

If you’re the recipient of such a letter and decide to accept the proposal, you can consider doing so using a Letter accepting payments in instalments.

If you want to formalise your agreement to pay in instalments in a form of loan agreement rather than a letter, consider using a Promissory note, which sets out the names of the parties, the amount due, instalment amounts, provision for interest and the effect of late payment. For more information, read Loan agreements and promissory notes.