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a monthly payment plan agreement is for any recurring installment that is made by a customer debtor or client to a party that is owed money here well go over reasons for payment plans and how to create a contract one use of payment plan agreement payment plans can be used for nearly any goods or services but theyre most often used when a customer is purchasing an expensive item or service and may not have the total cost in hand in this case the business can choose to offer the customer a payment plan creating a plan can be considered a win-win in that it removes the upfront financial burden for the buyer by dividing the cost into monthly payments and allows the seller to make more than the sales price by charging interest if the seller charges interest the buyer will end up paying more than the original sales price if the buyer needs the item right away a payment plan may be the best option but waiting and saving money until it can be paid in full can be a better course of action wh
