When developing a payment-plan agreement, an individual should review the customer's payment history, compile two or more payment arrangement options, and launch a discussion about the best option for both parties, according to Entrepreneur Magazine. The agreement should designate payment terms, due dates, and consequences for late or missed payments.
The written agreement should include the names and company affiliations of both parties at the top of the memo, and the date the contract was created, according to Entrepreneur Magazine. The plan should specify the type of service provided, the actual cost and the payment terms, which may include the payment due dates, interest amount charged, and a late- or missed-payment penalty fee. The payment-plan agreement should also include details about where to send payment and who to address the payment checks to when submitting.
The payment-plan agreement should provide a space for both parties to sign and date the agreement, and as an extra precaution, it may be necessary to have the agreement notarized to verify authenticity. If a down payment is required, the plan should note the amount and the remaining balance as well as any additional interest that may be charged if the payments are not upheld throughout the terms of the contract, according to Entrepreneur Magazine.