In accounts receivable a promise to pay, often shortened to PTP, turns a vague answer such as next week into a date you can check. It does not change the original payment terms, and the invoice stays overdue. It tells you when to expect the money, so reminders on that invoice can wait until the date and the follow-up can start the day after if nothing arrives.
What a good promise to pay includes
- The amount. The full balance or a stated part of it, with the invoice numbers it covers.
- The date. A calendar date rather than end of the month or after the next payment run.
- The payment method. Bank transfer, card or check, so you know where to look for the money.
- Who made it. A name and role, ideally someone who can approve the payment.
- Written confirmation. An email sent the same day that repeats the amount, the date and the invoices.
How to record and track promises to pay
- Log it against the invoice. Record the amount, date and contact in your receivables system, not in a personal inbox or a spreadsheet.
- Pause reminders on that invoice only. Keep the rest of the account on its normal schedule.
- Check the day after the promised date. Look for the payment once the day's receipts have been applied to invoices.
- Set a status. Mark the promise as kept, partly kept or broken, and act on it the same day.
| Status | What happened | Next step |
|---|---|---|
| Kept | Paid in full by the promised date | Close the promise |
| Partly kept | Part paid, or paid after the date | Agree a date for the rest |
| Broken | Nothing paid by the promised date | Contact the customer the same day and escalate |
| Rescheduled | The customer asked for a new date before the old one passed | Log the new date and count it as a new promise |
How to measure promises to pay
The kept rate is the number of promises paid in full by the promised date divided by the number that fell due, times 100. The same calculation with amounts shows how much of the promised money arrived.
Example. In September, 80 promises worth $412,000 fell due. Of these, 58 worth $301,000 were paid in full on time, 9 were paid late or in part and 13 were not paid at all. The kept rate is 58 ÷ 80 × 100 = 72.5%, and by amount it is $301,000 ÷ $412,000 × 100 = 73.1%. All figures are illustrative.
Look at the rate by customer as well. A customer that breaks two promises in a row is a stronger warning sign than one invoice paid a week late, and it may be time to review its credit limit.
What to do when a promise to pay is broken
- Call the next day. Ask what happened and whether part of the amount can be paid now.
- Agree one new date, not an open one. Confirm it in writing and say what happens if it is missed.
- Stop new credit. Put the account on hold under your credit control policy until the overdue balance is paid.
- Escalate in writing. Send a final dunning letter, then in the UK a letter before action before any court claim. The full sequence is in the guide to chasing payments.
Is a promise to pay legally binding?
The debt already exists under the original contract, so a promise to pay does not usually create a new one. It still matters as evidence. In England and Wales, a written acknowledgment of a debt signed by the debtor, or a part payment, restarts the six-year limitation period for claiming it under section 29 of the Limitation Act 1980, although it cannot revive a debt that is already time-barred. A promissory note is different, because it is a signed document that is itself an unconditional promise to pay a fixed sum. Rules differ between countries, so check the local position before you rely on a promise in court.
Sunbay records promises to pay next to the invoices they cover, so anyone following up sees the promised date, the amount and the customer's earlier replies. It sends reminders by email and SMS before and after the due date, matches incoming payments using ERP data and creates tasks for your team when a customer needs a call or a decision. See how automated reminders and escalations work.
Frequently asked questions
What is a promise to pay in collections?
It is a customer's commitment to pay an overdue invoice by a specific date, recorded by the supplier's collections team. The team pauses reminders on that invoice until the date and follows up if the payment does not arrive.
What is the difference between a promise to pay and a payment plan?
A promise to pay covers one amount on one date. A payment plan splits a larger balance into several amounts on agreed dates, usually in writing and with conditions, and each installment works like a promise to pay.
Should you stop reminders after a promise to pay?
Pause them on the invoices the promise covers until the promised date, then follow up the day after if nothing has arrived. Keep reminders running for any other overdue invoices on the account.
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