How to handle a customer who wants to pay in installments
Agree the schedule in writing before work starts, not after the invoice is late.
- Decide if you will offer it. Choose a rule you can repeat, such as a deposit plus set dates tied to progress.
- Tie payments to milestones. Link each payment to a stage of work so you are never far ahead of what you have been paid.
- Put dates and amounts in writing. List each amount, due date and what happens if one is missed.
- Hold the last payment for completion. Keep a final payment due at walkthrough so the job is not left half closed.
- Send reminders before each due date. A short note two days before keeps the plan on track.
Common questions
Should I charge extra for installments?
That is your choice. If you do, state it in the quote before the customer agrees.
Are there lending or disclosure rules?
Rules vary by state. If you finance anything yourself, verify with your attorney.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
Try BossHours free for 14 days
Field Hours $149, Office Hours $379 and After Hours $499 a month. Unlimited users on every plan, no setup fee, month to month, 14-day free trial.
Start your free trial