Installment

What is an installment?

An installment is one payment in a series that adds up to the total amount owed. Instead of paying $10,000 all at once, a client might pay in four $2,500 installments. Each scheduled payment is one installment. This approach makes large projects more manageable for clients while providing steady cash flow for contractors.

When to use installment payments

Installment plans work well for:

• Large projects — Breaking a $20,000 renovation into milestone payments
• Long-term work — Monthly payments for ongoing services
• Client cash flow — When clients can't pay the full amount upfront
• Risk management — Ensuring you get paid as work progresses rather than waiting until the end

Structuring installments

Common approaches include milestone-based payments (paid when specific work is completed), time-based payments (monthly or weekly), and hybrid models with a deposit upfront, progress payments, and final payment on completion. Document the installment schedule clearly in your contract and invoices.