HomeReady-to-use templates and contractsDebt collection and claimsInstallment Payment Agreement
Installment Payment Agreement Template: A Ready Form Certified by a Licensed Saudi Lawyer
- Category
- Debt collection and claims
- Language
- Arabic + English
- Format
- Editable DOCX
CERTIFICATION RECORD
This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.
Where an Arabic and an English text exist, the Arabic text prevails
An agreement that turns a stalled debt into a documented installment schedule, with acceleration on default, a promissory note, and an optional guarantee.
An installment payment agreement is the practical answer when a customer cannot settle in one payment but you neither want to lose the debt nor enter a long dispute. Instead of an open-ended delay with no ceiling, the agreement documents the principal and its source, spreads it over installments with fixed dates, and ties any delay to a clear consequence: the remaining installments fall due at once. Sighaty template B-02 is written for the Saudi context and the performance-of-obligation rules of the Civil Transactions Law, and it lets you back the agreement with a promissory note enforceable through Nafith, plus an optional personal guarantee, in two parallel languages with the Arabic text prevailing on any difference.
Get the Installment Payment Agreement TemplateB-02What this agreement is and when you need it
An installment payment agreement reschedules an existing debt in one signed document: how much, where it came from, how it will be paid, and what happens if an installment is late. Its real value is that it extracts an express acknowledgment of the amount from the debtor before any dispute begins, so the principal is no longer arguable later and the conversation is only about payment. A business needs it when it prefers certain collection in stages over a claim whose outcome and duration are unknown.
- A customer who acknowledges overdue invoices and asks to spread them over months.
- An amicable arrangement after a demand letter, before resorting to enforcement.
- Wanting to back the debt with a promissory note and a guarantor who secures payment.
What the smart-fill asks and what you receive
The smart-fill asks for the creditor and the debtor in Arabic and English with the CR or ID number of each party, then for the debt amount in figures and in words in both languages, and its source: invoices, or an agreement on a stated date. It then asks for the number of installments and the details of each one by number, amount, and due date, the IBAN the payments are transferred to, and the number of days of delay after which the remaining installments fall due at once.
Three options change the shape of the final document: whether a down payment is added on signature and its size, whether one promissory note is issued for the full amount or a separate note for each installment, and whether a personal guarantee is added with the guarantor's name and ID. You pick what fits your case, and the unused passages are stripped out, so you never receive a text with dangling alternatives.
Within minutes you receive a formatted bilingual Word document, ready to sign and editable before approval, with an ordered installment schedule and clauses consistent with the options you selected.
Why a lawyer-certified template beats a free download
The danger in free installment agreements is that they look complete while lacking every collection tool: a schedule with no acceleration clause means chasing each installment separately, a carelessly worded general release can waive your right to the rest of the sum, and the absence of any promissory note or guarantee leaves the paper a mere promise. The Sighaty template is certified by a licensed Saudi lawyer and ties these elements together in one coherent text, updated as the regulations change, so you leave the negotiation with a collection instrument rather than a statement of intent.
Frequently asked questions
What happens if the debtor is late on a single installment?
The template includes an acceleration clause: if the delay exceeds the number of days you set during fill-in, the remaining installments become immediately due instead of waiting for their dates. This clause is what stops the schedule from turning into open-ended stalling, and it lets you claim the full sum instead of chasing each installment on its own.
Do I need a promissory note alongside the installment agreement?
The agreement alone proves the debt, but a promissory note adds a faster enforcement route through the Nafith platform. The template lets you choose one note for the full amount or a separate note for each installment, and the second suits long schedules because it separates each maturity from the others. The drafting comes out consistent with the option you adopt.
Can a guarantor be added to the agreement?
Yes. The personal guarantee is an optional element of the template. When you enable it you enter the guarantor's name and ID number, so the guarantee clauses and signature block appear in the document and the guarantor becomes answerable for payment alongside the debtor. If you do not select it, no reference to a guarantor appears in the final text.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.