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Payment Terms
Installment Payment
Definition
One of a series of payments for a purchase made over time.
Overview
Installments break down large payments into smaller, regular amounts. Each installment is typically equal, with defined due dates.
Example
A $6,000 invoice paid in 3 installments: $2,000 on signing, $2,000 at midpoint, $2,000 on completion.
Best Practices
Define the number of installments, amounts, and due dates clearly in your agreement.
Common Mistakes to Avoid
Unclear installment schedule
Not tracking payments
Continuing work despite missed payments
Frequently Asked Questions
What if a client misses an installment?
Follow your contract terms—typically pause work until payment is received.