Normally payment agreement letters are written by the lender of the amount to the borrower. The payment letter can be used as a security form to submit to the court when the borrower had not paid the agreed amount.
Firstly the two parties sign a payment agreement form with a payment plan agreement with attributes like total money paid, time period and interest. When the borrower agrees the deed or promissory note is signed.
Secondly a payment agreement letter is sent by the lender to the borrower to make sure once again that borrower has agreed to the terms and condition.
Take a look at the sample payment agreement letter below:
Sample Payment Agreement Letter:
Hope you’re doing fine? I am writing this letter to remind you of the agreement deed signed last week and you are aware of the terms and condition. The sum of money i have lended you is $40000 for 2 years with an interest rate of 3 percent. I should receive the interest amount by 10th of every month. In case of delay the interest will be doubled every day.
This is an agreement letter that should be replied that you have accepted the terms and conditions.
If you have any queries further or would like to make changes in the agreement form, please contact me on the mobile or email me to this same letter.