Installment Payment Arrangement Letter Template

Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date

{{date}}

Debtor Information

Debtor Name: {{debtor_name}}

Debtor Address: {{debtor_address}}

Debtor Account/Reference Number: {{debtor_account_number}}

Subject

INSTALLMENT PAYMENT ARRANGEMENT – ACCOUNT NO. {{debtor_account_number}}

Salutation

Dear {{debtor_name}},

Background

This letter serves to formalise an agreement regarding the outstanding balance of {{currency}} {{outstanding_amount}} on your account reference number {{debtor_account_number}}. We acknowledge your request for an installment payment arrangement to settle this debt.

Payment Arrangement Terms

We agree to accept payment of the outstanding amount through the following installment plan:

1. Total outstanding amount: {{currency}} {{outstanding_amount}}

2. Number of installments: {{number_of_installments}}

3. Installment amount: {{currency}} {{installment_amount}} per installment

4. Payment frequency: {{payment_frequency}} (e.g., weekly, bi-weekly, monthly)

5. First payment due date: {{first_payment_date}}

6. Subsequent payments due on the {{day_of_month}} of each {{payment_frequency_unit}} until the full amount is settled. The final payment will be due on {{final_payment_date}}.

Payment Method

All payments should be made via {{payment_method}} (e.g., direct deposit, electronic funds transfer) to the following account:

Bank Name: {{bank_name}}

Account Name: {{our_company_bank_account_name}}

Account Number: {{our_company_bank_account_number}}

Branch Code: {{branch_code}}

Please use {{debtor_account_number}} as the payment reference.

Consequences of Default

Please be advised that failure to make any installment payment on or before the due date will constitute a breach of this agreement. In such an event, the full outstanding balance, including any accrued interest and collection costs, will become immediately due and payable. We reserve the right to pursue all available legal remedies to recover the outstanding debt.

Acceptance of Terms

Please sign and return a copy of this letter to indicate your acceptance of these terms and conditions. Once signed by both parties, this letter will constitute a binding agreement between {{company_name}} and {{debtor_name}}.

We trust that this arrangement will enable you to settle your outstanding debt in a manageable manner. If you have any queries, please do not hesitate to contact us on {{phone}} or at {{email}}.

Sincerely

{{company_name}}

Signature Block

_____________________________

Authorised Signatory for {{company_name}}

Name: {{our_name}}

Title: {{our_title}}

_____________________________

Debtor Signature

Name: {{debtor_name}}

Date: {{debtor_signature_date}}