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What scenarios might occur when using a Flexible Schedule Payment Policy?
What scenarios might occur when using a Flexible Schedule Payment Policy?

Flexible Schedule installment totals can change between several scenarios. This article includes details on what they may look like.

Sierra Burton avatar
Written by Sierra Burton
Updated over a week ago

When using the Flexible Schedule payment policy, the payment installment totals can remain the same or change, depending on several scenarios. Below are three examples of how the installment numbers can differ based on the circumstance.

Scenario 1: The Initial Policy

Let's say you want to collect payments on a Flexible Schedule at 25% of the contract total for each payment at a set time. You set the initial deposit at 25%, due 180 days before the event, a second installment at 25%, due 90 days before the event, a third installment at 25%, due 30 days before the event, and then a final balance for the remaining 25% due the day of.

Once your client signs the contract, they will see a payment schedule split between 4 payments. This is what each 25% installment would look like for a $10,000 contract.

Sample Policy

Percent Owed

Days before

Contract Value

Payment Installment

This Payment

$10,000

On signature

25% owed

First signature

180

Initial payment

$2,500

90 days out

50% owed

90

2nd payment

$2,500

30 days

75% owed

30

3rd payment

$2,500

Day-of

100% owed

0

Final payment

$2,500

The payment installments will remain the same as long as no changes are made to the contract.

Scenario 2: The Contract Value Increases

Using the same example above, let's say your client ordered an additional 500 chairs, tents, services, or a wedding package, which increases the contract total from $10,000 to $20,000. Let's also say that this contract increase occurred after the initial signature for the $10,000 contract value. If no payments were made, and the current date is within the 180-day window "Prior to Event", your client will see the initial payment increase to $5,000 instead of $2,500.

Below is what each 25% installment would look like for a contract adjusted from $10,000 to $20,000.

Sample Policy

Percent Owed

Days before

Contract Value

Payment Installment

This Payment

$10,000

On signature

25% owed

First signature

180

Initial payment

$2,500 (not paid)

On signature

25% owed

New signature

120

$20,000

Initial payment

$5,000

90 days out

50% owed

90

2nd payment

$5,000

30 days

75% owed

30

3rd payment

$5,000

Day-of

100% owed

0

Final payment

$5,000

Scenario 3: The Contract Value Increases after Accepting a Payment

Continuing with the example above, let's say your client paid the initial and second installments or deposits of $2,500. If the current date is within the 90-day window "Prior to Event", your client will see the initial payment increase to $5,000.

Below is what each 25% installment would look like for a contract adjusted from $10,000 to $20,000 after an initial payment was collected.

Sample Policy

Percent Owed

Days before

Contract Value

Payment Installment

This Payment

$10,000

On signature

25% owed

First signature

180

Initial payment

$2,500 (paid)

90 days out

50% owed

90

2nd payment

$2,500 (paid)

New signature

$20,000

2nd (or next)payment

$5,000

30 days

75% owed

30

3rd payment

$5,000

Day-of

100% owed

0

Final payment

$5,000

Note that the payment installment total depends on the contract and the current date compared to each installment deadline. Said another way: payment installment totals can change when using a Flexible schedule if the contract total is adjusted (i.e., items are added or removed from the project) and/or if the payment installment deadline is within x days prior to the event.

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