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In this tutorial on writing a payment agreement, it's explained that a payment agreement is a legally binding document between a lender and a borrower, detailing loan terms including amount, payment schedule, and penalties. The first step is to draft the opening agreement, confirming that the signer understands their financial responsibilities and agrees to make payments by a specified date. The second part involves outlining penalties for late payments, which can vary by agreement and can be adjusted regarding percentage and amount. By following these guidelines and using a template, one can effectively create a payment agreement.
