If you`re offering your customers the option of paying in installments, it`s important to have a formal agreement in place so that both parties understand the terms and conditions. To help you out, we`ve put together a sample agreement letter for installment payment that you can use as a guide.
Dear [Customer],
We are pleased to offer you the option of paying for your purchase in installments. Please review the following terms and conditions of our agreement:
1. Total Amount: The total amount due for your purchase is [insert amount].
2. Payment Schedule: You agree to pay the total amount due in [insert number] installments of [insert amount] each, with the first payment due on [insert date] and subsequent payments due on the same day of each month thereafter.
3. Late Payments: If any payment is not received by the due date, a late fee of [insert fee amount] will be added to your account.
4. Default: Failure to make any payment on or before its due date will constitute a default, and the entire balance will become immediately due and payable.
5. Security Interest: As security for the payment of the balance due, we retain a security interest in the purchased items until the full balance is paid in full.
6. Termination: We reserve the right to terminate this agreement and demand immediate payment of the entire balance if you fail to comply with any of the terms and conditions outlined herein.
7. Governing Law: This agreement will be governed by and construed in accordance with the laws of [insert state].
Please sign below to indicate your acceptance of these terms and conditions.
Sincerely,
[Your Name]
By signing below, I acknowledge that I have read and agree to the terms and conditions outlined above.
Customer Signature: ___________________________
Date: ___________________________