Who it's for
- Businesses agreeing instalments with a customer who owes an invoice
- Creditors who have sent a letter before action and received a payment proposal
- Creditors willing to accept less if every instalment is paid on time
What's included
- About this template — pre-action use, full and final settlement and the Breathing Space check
- Late payment compensation table for business debts
- Payment agreement (7 clauses): the debt (breakdown table), agreed repayment plan, interest (three options), default, full and final settlement (optional), entire agreement, governing law
Save with a bundle: get this plus 14 more documents in the Business Complete Bundle for £44.99.
See what's in the bundle →Key points covered
- Late payment compensation and statutory interest apply to business-to-business debts only
- Choose whether interest stops, continues or applies only to late instalments
- Missed or late instalments let the creditor demand the balance on 7 days' notice
- A reduced settlement only applies if every instalment is paid on time
- Check the debtor is not in a Breathing Space — creditors are told by the Insolvency Service; the register is not public
DocPilot templates are drafted from current legislation and official guidance (GOV.UK, legislation.gov.uk and the relevant regulators), checked against those sources and fully re-reviewed every six months. They are not legal advice. How we make our documents →
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Related documents
Debt Repayment Agreement£9.99 · See what's included →Late Payment Reminder Pack£11.99 · See what's included →Debt Demand Letter Pack£14.99 · See what's included →
Questions
How is this different from the Debt Repayment Agreement?
This one is more detailed: a full debt breakdown, three interest options and an optional settlement clause. The Debt Repayment Agreement is shorter.
Can I accept less than the full amount?
Yes, using clause 5 — but only if all instalments are paid in full and on time.
What if a payment is missed?
The creditor can give 7 days' notice and demand the full remaining balance.
Is it in the Business Complete Bundle?
Yes. The Payment Agreement Template is one of the 15 documents in the bundle.
Payment Agreement Template
£9.99 · Word + PDF · instant download
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