Payment schedule

A payment schedule is a calendar of payments. It may list invoices to be collected or break down a debt into several installments agreed upon with a customer experiencing financial difficulties.

Example

A customer owes €9,000 and cannot pay the entire amount. The supplier agrees to accept three payments of €3,000 on March 10, April 10, and May 10. Each payment is tracked; if one is missed, the collection process resumes.

Why It’s Important

A payment schedule converts a delinquent debt into regular payments while retaining the customer. It must be closely monitored to ensure it does not simply become a deferral.

For more information: the customer payment schedule in debt collection software.

See also: suspension of collection efforts, outstanding balances, customer collection.