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Payment plan offer: when the client cannot pay in full

If a client replies that they cannot pay the whole invoice, a written payment plan often gets the money in. Overdue Kit's letter 5 offers 3 instalments, 30 days apart, with the first one due within 7 days, and says the full balance becomes due if an instalment is more than 7 days late.

When to send it

Not on a fixed date. Send it when the client answers one of your reminders and says they cannot pay in full.

What goes in it

• Thanks for the reply, and the invoice number.
• The amount split into 3 instalments with exact amounts and dates, 30 days apart.
• The condition: the offer stands if the first instalment arrives by a date 7 days out.
• The rule that the full remaining balance is due at once if an instalment is more than 7 days late.
• For EU and UK business debts: you keep your right to claim statutory interest and the fixed compensation.
• A request to confirm by reply.

Excerpt

The opening of letter 5 in Overdue Kit. Words in brackets are filled in from your invoice.

Dear [contact name],

Thank you for your reply. To help you settle invoice [number], I can accept payment of [amount] in 3 instalments:
- [amount] by [date]
- ...

The full letter 5, with the instalment amounts and dates worked out, is part of the paid kit (EUR 19 once).

Tips

• Ask for written agreement. A reply email is enough to have a record.
• Make the last instalment carry the rounding, so the total is exact.
• Put the instalment dates in your calendar and check each one.

The full sequence

1. Letter 1: friendly reminder (3 days after the due date)
2. Letter 2: firm reminder (7 days after letter 1)
3. Letter 3: formal notice (14 days after letter 1)
4. Letter 4: final notice (21 days after letter 1)
5. Letter 5: payment plan offer (when they say they cannot pay in full)

Rates and sources as stored on 11 October 2026. Business-to-business debts only. Templates and calculations, not legal advice.