A payment that covers only a portion of the total invoice amount, with the remaining balance still owed.
A partial payment is any payment that covers less than the full invoice amount. The remaining balance stays outstanding until additional payments are made. Partial payments are common for large projects, milestone-based billing, and situations where clients need to spread costs over time.
For contractors, accepting partial payments is a practical way to maintain cash flow on bigger jobs without requiring the full amount upfront.
Partial payments are typical in deposit or upfront payment before work begins, milestone payments tied to project phases, installment plans for larger invoices, and progress billing on long-term contracts. Each scenario involves invoicing for a portion of the total with a clear schedule for the remaining balance.
Track each payment against the original invoice and clearly show the remaining balance. Your invoicing software should record partial payments and update the outstanding amount automatically. Always send an updated statement or receipt after each partial payment so both parties have a clear record.
Define your partial payment terms in writing before starting work. Specify deposit amounts, milestone triggers, and due dates for each installment. Stop work clauses for missed payments help protect you from completing a project without adequate compensation.
Invoicer records partial payments and shows remaining balances automatically.
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