An overdue invoice payment plan should identify the agreed unpaid balance, exact installment amounts, due dates, payment references and who confirms the arrangement. Start with a reconciled balance and a client proposal—not three new sales invoices for the same delivered goods.
This editable template is for small B2B suppliers discussing an undisputed trade invoice with a customer. It is a commercial communication aid, not a jurisdiction-specific debt agreement or legal advice. Consumer credit, disputed debts, insolvency and formal collection proceedings need their own assessment.
Check what is actually outstanding
Before proposing installments, confirm the invoice reached the right business and that goods, returns, credit notes and receipts are reconciled. Ask whether the obstacle is temporary cash timing, a missing purchase order or a genuine dispute. A payment schedule cannot resolve all three.
Use this balance identity:
Do not subtract an unconfirmed transfer screenshot as though it were a settled receipt. Equally, do not chase a payment that has already cleared but was recorded under another reference.
Copy this client-facing payment-plan proposal
Download the editable proposal, acceptance reply and receipt log. Replace every bracketed field. The blank asset is designed for your own amounts and dates.
Hello [name],
We are following up on invoice [number], issued to [customer legal business name] for [goods/order reference], originally due on [date].
As of [balance date], the invoice total is [amount/currency], agreed credits are [amount] and confirmed payments are [amount]. The remaining balance we propose to schedule is [amount/currency]. Please tell us promptly if your records differ.
We propose the following payments against that existing balance:
Payment 1: [amount/currency], due [full date], reference [invoice number / installment 1].
Payment 2: [amount/currency], due [full date], reference [invoice number / installment 2].
Payment 3, if needed: [amount/currency], due [full date], reference [invoice number / installment 3].
The scheduled amounts total [amount/currency]. Each payment will reduce the outstanding amount on the original invoice. These requests are collection instructions for that balance.
Interest, charges or other changes: [state the specifically proposed treatment; obtain suitable advice before changing rights or adding charges].
Payment route: [bank details or individual payment link, supplied through our verified business channel]. If you use a different payer name or reference, please send remittance details to [contact].
Please have an authorized contact confirm the balance, amounts, dates and payment route by [reply deadline]. We will confirm the final arrangement in writing before relying on the proposed schedule.
If a payment may be missed, contact [name/channel] before its due date. We will review the next step under the agreed terms; a revised schedule requires confirmation.
Thank you, [supplier name and contact].
The proposal deliberately leaves consequential legal terms open. Do not insert automatic acceleration, waivers, penalties, personal guarantees or “full and final settlement” language without understanding and obtaining advice on their effect.
Give the customer a useful acceptance reply
Provide a short reply the customer's authorized contact can complete:
“On behalf of [customer business], I confirm that our reconciled unpaid balance for invoice [number] is [amount/currency] as of [date]. We agree the following payment amounts and dates: [schedule]. We will use [payment route/references]. The agreed treatment of charges or other changes is [terms]. Our payment contact is [name/email]. Please confirm the arrangement and send the payment instructions.”
Check that their reply matches your proposal. A response saying “we will try next month” does not confirm a dated schedule. If they change an amount or condition, settle the difference before sending collection instructions.
Whether this exchange forms an adequate agreement for your circumstances is a legal question; the template makes the commercial details explicit, not universally enforceable.
See how the template handles a partial receipt
Take a hypothetical invoice for €1,500, with a documented €100 credit and €200 already received. The unpaid balance is:
The parties propose three €400 installments. If the first €400 arrives, the remaining invoice balance becomes €800. The original €200 must not be deducted twice.
| Record | Amount | Remaining balance |
|---|---|---|
| Reconciled opening balance | €1,200 due | €1,200 |
| First installment received | €400 paid | €800 |
| Second installment scheduled | €400 not yet received | €800 |
| Third installment scheduled | €400 not yet received | €800 |
A schedule is a promise; a receipt changes the balance. This example assumes no added interest, further credits or charges. It is not a collection result.
If only €250 arrives for installment 1, record €250 received, €150 still due for that installment and €950 remaining overall. Future scheduled payments are still €800. This prevents a vague “part-paid” label from hiding what needs follow-up.
Collect the first agreed amount online
Once the schedule is confirmed, a PayRequest payment link can give the customer a way to pay the agreed amount online. Create an account, complete setup, connect an eligible provider and prepare the first fixed-amount request with the original invoice reference.
Review the amount, currency, description and available payment methods before sending it. Match confirmed receipts back to the original invoice in your financial records. A standalone payment link does not automatically amend an invoice stored in another accounting system or authorize future debits.
If you already have a working invoice-payment route, use that rather than introduce a second live request for the same installment. Keep the accountant's sales invoice separate from the collection schedule; get advice if the underlying sale, tax or credit position changes.
For standard payments, PayRequest Free has a 2% platform fee capped at €25 per transaction. Active Premium (€5/month) and Business (€20/month) remove the standard platform fee. Provider costs and commission-payment exceptions are separate; signup alone does not activate a paid plan. See current pricing.
Know when a payment plan is the wrong next step
If the customer disputes the goods or the balance, resolve and document the dispute first. If the dates are plainly unaffordable, sending more links does not make the plan realistic. If insolvency or formal collection is involved, seek appropriate professional advice before varying the arrangement.
Commercial rights differ by jurisdiction and contract. For example, GOV.UK's late commercial payment guidance describes UK rules; do not treat them as worldwide rules or copy a charge into this template automatically.
The next action is concrete: agree a realistic schedule for a reconciled balance, then prepare the first payment request. Measure confirmed collection separately from an accepted proposal.
Editorial method: AI-assisted preparation; sources reviewed on 9 November 2026. This original template and its arithmetic are illustrative, not a lawyer-reviewed instrument or a customer recovery case. No payment, debt recovery rate or legal outcome is claimed. The cover is illustrative.
