Payment plan: definition, example, and why it matters
Used to land bigger jobs the customer couldn't pay in one lump sum. Typically 3–6 installments with a written promissory note. Charge interest if it exceeds 90 days.
Short definition. An agreed schedule for paying off an invoice in installments.
Category. Payment plan is a payments term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds payment plan into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does payment plan mean?
Used to land bigger jobs the customer couldn't pay in one lump sum. Typically 3–6 installments with a written promissory note. Charge interest if it exceeds 90 days.
Related terms
Partial payment — A payment that covers part of an invoice but not the full balance.
Progress billing — Invoicing a long job in installments tied to completion milestones.
