Payment plan

A Payment plan lets a customer spread the cost of goods or services over time in scheduled instalments. It is a simple agreement that sets out the total price, any upfront payment, the instalment schedule and what happens if a payment is late.

In the UK, payment plans are common for both projects and ongoing services. If you offer plans to consumers and charge interest or defer payment for longer, the arrangement may fall under consumer credit rules, so check what permissions and wording you need. For business customers, clear contract terms and matching invoices are usually enough.

Include these basics so the plan is clear:

• Total price and any deposit.
• Number, amount and timing of instalments.
• Payment method (for example Direct Debit, card or bank transfer).
• Any interest, fees or discounts, and how they are calculated.
• Consequences of missed or late payments (such as suspension, charges or plan cancellation).
• Ownership or access terms until fully paid (for example retention of title).
• How to cancel or change the plan.