Extended payment terms clause: Copy, customize, and use instantly
Introduction
An extended payment terms clause allows for flexibility in payment schedules, giving one party the ability to delay payments beyond the standard payment terms. This clause is useful when the buyer or debtor requires more time to pay due to cash flow issues or other factors, while still maintaining a clear agreement on the extended timeline and any applicable penalties or interest rates.
Below are templates for extended payment terms clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard extended payment terms clause
This version provides a simple extension of payment terms.
The Parties agree that payment for any outstanding amounts under this Agreement may be made within [X] days following the original due date. During this period, the buyer may pay in installments, with the final payment due no later than [X] days after the original due date.
Extended payment terms clause with provision for interest on overdue amounts
This version includes interest on overdue amounts.
If payment is not made within the original terms, [Party B] agrees to pay the outstanding balance in full within [X] days, with interest accruing at a rate of [X]% per annum, calculated from the original due date until payment is received.
Extended payment terms clause with provision for installment payments
This version offers installment payments.
The Parties agree to extend the payment terms under this Agreement. [Party B] may pay the total outstanding balance in [X] equal installments, with the first installment due [X] days after the original due date and the final installment due no later than [X] months from the original due date.
Extended payment terms clause with provision for a lump sum final payment
This version includes a lump sum final payment.
If [Party B] does not make payment within the original terms, the Parties agree to extend payment deadlines, allowing for payments to be made in [X] installments. The remaining balance, due as a lump sum, will be paid no later than [X] days after the final installment.
Extended payment terms clause with provision for additional fees
This version includes additional fees for extended terms.
In the event that payment terms are extended beyond the agreed-upon period, [Party B] will incur a fee of [X]% of the total outstanding balance for every [X] days the payment is delayed, in addition to any interest charges.
Extended payment terms clause with provision for early settlement discount
This version offers a discount for early settlement.
[Party B] is granted an extended payment term of [X] days. If [Party B] pays in full within [Y] days of the original due date, a discount of [X]% will be applied to the outstanding balance. Any late payments after the extended term will incur an interest charge at a rate of [X]% per annum.
Extended payment terms clause with provision for prorated payments
This version applies prorated payments.
If payment is extended, [Party B] agrees to make prorated payments over a period of [X] months. Each installment will be calculated based on the remaining balance divided equally among the agreed payment periods, with the final payment due no later than [X] months from the original due date.
Extended payment terms clause with provision for a grace period
This version includes a grace period.
If payment is not received by the original due date, [Party B] will be granted an additional grace period of [X] days to make payment without penalty. After the grace period, the outstanding balance will accrue interest at a rate of [X]% per annum.
Extended payment terms clause with provision for interest-free period
This version includes an interest-free period.
[Party B] is granted an extended payment term of [X] days. During this period, no interest will be charged. If payment is not received by the end of the extended term, interest will accrue at a rate of [X]% per annum from the original due date.
Extended payment terms clause with provision for fixed payment intervals
This version applies fixed intervals for payments.
[Party B] agrees to pay the outstanding balance in fixed installments of [X] amount every [X] days, with the first installment due [X] days from the original due date. The final payment is due no later than [X] days from the original due date.
Extended payment terms clause with provision for performance-based payments
This version includes performance-based payments.
[Party B] agrees to make extended payments based on the completion of specified milestones under this Agreement. Payment will be made in installments, with each payment corresponding to the successful completion of agreed-upon performance objectives.
Extended payment terms clause with provision for no penalty if paid in full within the extension
This version removes penalties for early payment.
In the event that payment is extended, [Party B] may settle the full amount at any time before the final extended payment due date without incurring any penalties. If the payment is not made by the final due date, interest will accrue at a rate of [X]% per annum.
Extended payment terms clause with provision for reduced payment amounts over time
This version reduces the payment amount over time.
The Parties agree to an extended payment term, where [Party B] will pay a reduced amount of [X]% of the total outstanding balance each month. The remaining balance is to be paid in full no later than [X] months from the original due date.
Extended payment terms clause with provision for renegotiation after a specified period
This version allows renegotiation after a period.
If [Party B] is unable to meet the original payment terms, both Parties agree to extend the payment deadline. After [X] months, the Parties will meet to renegotiate the payment terms, including potential adjustments to the total amount due.
Extended payment terms clause with provision for partial interest payments
This version allows partial interest payments.
If payment terms are extended, [Party B] agrees to pay interest on the outstanding balance every [X] days until the full amount is paid. The interest rate will be [X]% per annum, applied to the outstanding balance until payment is made in full.
Extended payment terms clause with provision for installment-based final payment
This version requires an installment-based final payment.
[Party B] agrees to pay the remaining balance of the Agreement in [X] installments, with the first installment due [X] days after the original due date. The final installment will be due [X] days after the last installment payment is made.
Extended payment terms clause with provision for lump sum early payment
This version allows for a lump sum early payment.
[Party B] is granted extended payment terms for [X] days. However, if [Party B] chooses to pay the full balance before the end of the extended period, they may do so in a lump sum without additional interest charges.
Extended payment terms clause with provision for fees based on delayed payment
This version includes fees for delayed payments.
If payment is not received within the extended payment terms, [Party B] agrees to pay a late fee of [X]% of the outstanding balance, in addition to any interest charges, for each [X]-day period the payment remains overdue.
Extended payment terms clause with provision for extended terms for specific payments
This version allows extended terms for specific payments.
The Parties agree to extend the payment terms for specific charges or services, including [name of service or product], allowing payment to be made within [X] days after the due date without penalty.
Extended payment terms clause with provision for review of terms after [X] months
This version includes a review of terms after a period.
If [Party B] requires an extension of the payment terms for more than [X] months, both Parties agree to review the payment schedule and terms, including the interest rate, penalties, and the total outstanding balance, to determine if further adjustments are needed.
Extended payment terms clause with provision for reactivation of the contract if payment is delayed
This version allows reactivation after delayed payment.
If payment is delayed beyond the extended payment period, the Agreement will be considered inactive. Upon payment of the outstanding balance, [Party B] may request reactivation of the Agreement, subject to mutually agreed-upon terms.
Extended payment terms clause with provision for additional terms based on payment schedule
This version links the terms to the payment schedule.
The Parties agree to extend the payment term based on a payment schedule that will be provided by [Party B]. If any payment is missed, the payment schedule will be revised to accommodate the outstanding amounts, with an updated due date for the full balance.
Extended payment terms clause with provision for payment installment limits
This version includes limits on installments.
The Parties agree that payments made under the extended terms will be in installments of no less than [X] dollars. The payment plan will be structured to ensure the total balance is paid within [X] months from the original due date.
Extended payment terms clause with provision for early payment incentive
This version includes an early payment incentive.
If [Party B] pays the full outstanding amount before the extended due date, a discount of [X]% will be applied to the balance. If payment is not made by the extended date, the full amount, plus interest, will be due immediately.
Extended payment terms clause with provision for monthly payment caps
This version applies a cap on monthly payments.
[Party B] agrees to pay the outstanding balance in monthly installments of no more than [X] dollars each. The total amount owed under this Agreement will be paid in full within [X] months from the original due date.
Extended payment terms clause with provision for delayed payment penalties
This version includes penalties for delayed payments.
If payment is not received by the extended due date, [Party B] will incur a penalty of [X]% of the outstanding amount for each [X] day period the payment remains overdue.
Extended payment terms clause with provision for payment plan agreement
This version requires a payment plan agreement.
[Party B] agrees to establish a payment plan with [Party A], detailing specific installment amounts and due dates. The payment plan will be agreed upon in writing and adhered to during the extended payment period.
Extended payment terms clause with provision for interest rate reduction on early payment
This version includes an interest rate reduction for early payment.
If [Party B] makes early payment during the extended period, the interest rate applied to the outstanding balance will be reduced from [X]% to [Y]% for the remainder of the term.
Extended payment terms clause with provision for deferred interest payments
This version allows deferred interest payments.
Interest on the outstanding balance will be deferred for the first [X] months of the extended payment period. After this deferral period, interest will accrue at a rate of [X]% per annum on the remaining balance.
Extended payment terms clause with provision for payment in kind
This version allows payment in kind.
In lieu of monetary payment, [Party B] may agree to make payments in kind, providing goods or services with an agreed value to be credited against the outstanding balance. This payment arrangement will be reviewed and agreed upon in writing.
Extended payment terms clause with provision for conditional extension
This version ties the extension to conditions.
The extended payment terms provided under this Agreement are contingent upon [Party B] meeting certain conditions, including [specified conditions]. If these conditions are not met, the original payment terms will be enforced.
Extended payment terms clause with provision for automatic payment extension after hardship
This version extends payments automatically under hardship conditions.
If [Party B] faces financial hardship, payments under this Agreement will be automatically extended for an additional [X] days without penalty. [Party B] must provide documentation of the hardship within [X] days to qualify for the extension.
Extended payment terms clause with provision for third-party financing
This version allows third-party financing.
[Party B] may choose to finance the outstanding balance through a third-party lender, provided the financing terms are mutually agreed upon by both Parties. The extended payment terms will apply to the amount financed.
Extended payment terms clause with provision for cost of financing
This version applies to the cost of financing.
If [Party B] elects to finance the outstanding balance through an external lender during the extended payment period, the costs associated with financing, including interest and fees, will be the responsibility of [Party B].
Extended payment terms clause with provision for split payments
This version splits payments across multiple installments.
The total amount owed will be split into [X] equal installments, with the first installment due [X] days after the original due date. Subsequent installments will be due every [X] days until the full amount is paid.
Extended payment terms clause with provision for fixed due dates
This version includes fixed due dates.
[Party B] agrees to pay the outstanding balance in equal installments, with each installment due on the [specified day] of each month during the extended payment period. The full balance is due by [final date].
Extended payment terms clause with provision for review and adjustment of terms
This version allows for review and adjustments of terms.
[Party A] and [Party B] agree to meet every [X] months during the extended payment term to review the current market conditions and adjust the payment schedule or terms if necessary to accommodate both Parties.
Extended payment terms clause with provision for no interest if paid within the extension period
This version waives interest for payments within the extended period.
If [Party B] pays the outstanding balance in full within the extended payment period, no interest will be charged. However, if payment is not made within the agreed period, interest will accrue at a rate of [X]% per annum from the original due date.
Extended payment terms clause with provision for early termination if payments are not met
This version allows for early termination.
If [Party B] fails to make payments according to the extended terms, [Party A] has the right to terminate the Agreement early and demand full payment of the outstanding balance immediately.
Extended payment terms clause with provision for payment in foreign currency
This version applies to foreign currency payments.
Payments under this Agreement may be made in [specified foreign currency] at the exchange rate in effect on the date of payment. The amount to be paid will be adjusted to reflect the equivalent value of [Party B]’s local currency.
Extended payment terms clause with provision for revised payment amounts after initial extension
This version allows for revision of payment amounts.
If the extended payment period proves insufficient for [Party B] to meet their obligations, the payment amounts may be revised by mutual agreement, with both Parties agreeing to a new payment schedule based on [Party B]’s financial position.
Extended payment terms clause with provision for flexibility in payment amount
This version provides flexibility in payment amounts.
[Party B] may choose to make smaller, more frequent payments during the extended period, with the total amount due not exceeding [X]% of the total contract amount each month. The payment schedule will be adjusted to reflect these smaller installments.
Extended payment terms clause with provision for prepayment discount
This version offers a prepayment discount.
If [Party B] decides to settle the outstanding balance early during the extended payment period, a discount of [X]% will be applied to the remaining balance. This discount will be calculated from the original amount due.
Extended payment terms clause with provision for delayed payments leading to full balance due
This version triggers full balance due if payments are delayed.
If [Party B] delays any payment beyond the agreed-upon extended payment term, the full outstanding balance will become immediately due and payable, along with accrued interest at a rate of [X]% per annum.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.