Sample of Advance Payment Agreement

If you’re running a business where your services are paid ahead of time, an advance payment agreement can be a valuable tool to ensure that you get paid for your services and your clients understand their obligations. This document sets out the terms of payment, including how much is due, when it’s due, and how it should be paid.

To help you get started, we’ve provided a sample advance payment agreement below. Keep in mind that this is just a template – you should customize it to suit your business needs and consult with a legal professional to make sure it complies with any relevant laws and regulations.

Advance Payment Agreement

This Advance Payment Agreement (“Agreement”) is made on the [insert date] between [insert your business name], the “Service Provider,” and [insert client name], the “Client.”

1. Services to be Provided

The Service Provider agrees to provide [insert description of services] (“Services”) to the Client according to the terms of this Agreement.

2. Payment

The Client agrees to pay the Service Provider the sum of [insert amount] (“Advance Payment”) as an advance payment for the Services to be provided. The Advance Payment is non-refundable and will be credited against the total amount due for the Services.

3. Payment Terms

The Advance Payment is due on or before [insert due date]. Payment shall be made by [insert payment method], and the Service Provider will only begin work on the Services once the Advance Payment has been received.

4. Acceptance

This Agreement constitutes acceptance by the Client of the Service Provider’s terms and conditions, which are available on request.

5. Termination

Either party may terminate this Agreement at any time by giving [insert notice period] days’ written notice to the other party. In the event of termination, the Service Provider will be entitled to retain the Advance Payment as payment for the work performed up to the date of termination.

6. Miscellaneous

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns. This Agreement may not be assigned by either party without the prior written consent of the other party. This Agreement shall be governed by the laws of [insert governing law], and any disputes arising from this Agreement shall be resolved through arbitration in [insert arbitration location].

By signing below, the parties acknowledge that they have read, understood, and agreed to the terms of this Advance Payment Agreement.

Service Provider:

[Insert Service Provider Name]

[Insert Service Provider Signature]

[Insert Date]


[Insert Client Name]

[Insert Client Signature]

[Insert Date]


By using an advance payment agreement, you can help ensure that you get paid for your services and reduce the risk of non-payment. It’s important to create a customized agreement that clearly outlines the terms of payment, services provided, and any other relevant details. With this sample agreement as a starting point, you can create an agreement that meets your specific business needs.