Payment Arrangement Agreement Letter and Its Sample

Sometimes, circumstances beyond the control of anyone can change his/her financial situation. It can be a natural disaster, losing a job, or a death in the family. It may lead to the non-payment of bills. In this case, a payment arrangement agreement letter will be very useful and helpful.

What Is a Payment Arrangement Agreement Letter?

This is a kind of letter that states all the related information as it will be a binding contract. You’ll be able to use it in court. It is commonly written by the entity or company that is owed money. The payee will sign it if he/she thinks he/she can meet the terms of payment.

What to Include in a Payment Arrangement Agreement Letter

There are a few elements to be included in this kind of letter. Here they are:

  • A greeting or salutation
  • An introduction or opening paragraph
  • The body of the letter
  • A closing or concluding paragraph
  • The signature

How to Make a Payment Arrangement Agreement Letter

Here is the detailed step by step on how to make a letter of a payment arrangement agreement:

  • Firstly, politely greet the recipient!
  • Secondly, make an apologizing!
  • Thirdly, state the payment agreement and request for the agreement!
  • After that, explain the details of the payment arrangement agreement!
  • Then, close the letter politely!
  • Lastly, put your signature and name!

Tips to Make a Payment Arrangement Agreement Letter

If you want to write such a letter, it will be better if you consider the following tips:

  • Follow the proper format!
  • Use good grammar!
  • Pay attention to spelling!
  • Keep it brief, concise, and easy to understand!
  • Include all the needed details!
  • Don’t forget to proofread it!

Payment Arrangement Agreement Letter Sample

If you need a letter sample for a payment arrangement agreement, you can see it below:

Dear Mr. Chopper,

We apologize for the circumstances affecting your financial situation. Thanks for taking our call. I hope you agree to the payment arrangement we’ve discussed to take care of your unpaid balance.

Current debt: $1000 for account number#1234; originally due October 1st, 2020.

The payee promised to pay it back in $200 monthly. Each payment is due on the 10th of the month. The 1st payment will be due on January 10th, 2020. So, the final due will be on May 10th, 2020. The payments are acceptable by credit card or check.

Please return the payment info on the form available below. A bill will be sent every month. You will have to mail it back to our department. We hope you understand this matter. We also hope that you will be able to meet the agreement. If you have any questions, you can call me at (111)-111-1111 or send an email to


John Koller

Manager of Denver Collections

That is all about a payment arrangement agreement letter. If you want to write this kind of letter on your own, just feel free to follow the sample above. Hopefully, this will help you a lot.


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