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now there are a couple of different instruments that you can use to formalize one is like a retail installment contract and the other is a promissory note now which one is better for your business [Music] hello everyone i hope your day is going well hey i want to talk today about why you should formalize your payment plans so if you set up your customer on a payment plan for your goods or services or part of your goods or services why is it a good idea to formalize that well theres this old saying that says lets put a little paper between friends and that means mostly that you have an agreement a financial agreement and you need to formalize it like put it in writing so of course the likelihood everyone will follow through with that arrangement is much greater but also if they need to go back and review what that arrangement is down the road then they have an opportunity to eliminate any misunderstandings by just simply reading the contract but also if one or the other party defaults