Payment Undertaking Template
A payment undertaking is a short, focused promise to pay a specific amount by a specific date — quick to put in place when you just need the commitment in writing.
What's included
- Understand what a payment undertaking is
- Capture the amount, date and acknowledgement simply
- See where an undertaking fits among other tools
- Keep it short without losing the essentials
- Know when to use a fuller document instead
5 min read
The template
This general one-page template records a focused promise to pay. Replace each [placeholder].
PAYMENT UNDERTAKING From: [Debtor legal name] ABN/ACN [number] To: [Creditor legal name] ABN [ABN] Date: [date] 1. I/we acknowledge that [$amount] is owing to the Creditor in respect of [invoice numbers / description] and that it is due and not in dispute. 2. I/we undertake to pay [$amount] to the Creditor by [date], to [BSB/account], reference [reference]. 3. If payment is not made by that date, the Creditor may take steps to recover the amount without further notice. Signed: ______________ Name/Title: [name]
How to use it
Reach for an undertaking when you simply need the commitment captured fast — a single amount, a single date, an acknowledgement that it is owed. It is lighter than a deed or a full agreement, which makes it quick to get signed, but it still removes the "I never agreed to pay" argument. Where the amount is large, the situation is contentious, or you want formality, step up to a deed of acknowledgement of debt instead. Keep the signed undertaking on file and diarise the date.
Not legal advice
This is a general template and general information only — not legal advice. Whether an undertaking is the right tool, and how it should be worded, depends on your situation. Have it reviewed by a lawyer before you rely on it for anything significant.
Tips
- A payment undertaking is a short, focused promise to pay.
- It captures the amount, date and an acknowledgement.
- It is quick to put in place but still useful evidence.
- Use a fuller document for large or contentious amounts.
FAQ
How is an undertaking different from a deed?
An undertaking is lighter and quicker; a deed is more formal with specific execution requirements. Choose by the size and sensitivity of the matter. This is general information, not legal advice.
Is an undertaking enforceable?
A clear, signed undertaking supported by the underlying debt is useful evidence, but enforceability depends on the facts. Take advice for significant amounts.
Can I include a payment plan in it?
You can, but at that point an instalment agreement or arrangement is usually the better fit. Keep the undertaking for single-payment promises.
Templates are a head start — not legal advice
Customise to your business and have important documents reviewed. Need to recover a debt? We can help.