When to send it
When a client says cash flow is the problem, usually between day 7 and day 30. Don't offer it unprompted in the first reminder.
The full template
Template
- Subject
- Invoice [INVOICE #]: payment plan
Hi [CLIENT NAME], Thanks for being upfront about cash flow. To settle invoice [INVOICE #] ([AMOUNT]), I can accept it in [2 / 3] payments: 1. [AMOUNT 1] by [DATE 1] 2. [AMOUNT 2] by [DATE 2] 3. [AMOUNT 3] by [DATE 3] Same payment details: [BANK DETAILS / PAYMENT LINK], reference [INVOICE #]. If any instalment is more than [3] days late, the full remaining balance becomes due immediately. Could you reply "agreed" to confirm? [YOUR NAME]
Variant: Two-payment version
Two-payment version
- Subject
- Invoice [INVOICE #]: two payments
Hi [CLIENT NAME], Happy to split invoice [INVOICE #]: [HALF] by [DATE] and [HALF] by [DATE + 14 DAYS]. If either is missed, the balance is due at once. Reply "agreed" and we're set. [YOUR NAME]
Mistakes to avoid
- Agreeing on a plan by phone and never putting it in writing.
- Open-ended plans ("pay what you can").
- Restarting work at full pace before the first instalment arrives.
- No consequence for a missed instalment.
FAQ
Should I offer a payment plan to a late client?
If the client has explained a genuine cash flow problem and the alternative is a long dispute, yes. Keep it short: two or three payments.
How do I word a payment plan email?
List each amount and date, repeat the payment details, state what happens if one is missed, and ask for written confirmation.