Partial Payment

What is a partial payment?

A partial payment is any payment that's less than the full amount owed on an invoice. After a partial payment, the client still has an outstanding balance to pay. This might be planned (like a payment plan) or unplanned (like a client who can only pay part of what they owe right now).

Common partial payment scenarios

Partial payments happen in several situations:

• Deposits — Client pays 50% upfront before work begins
• Progress billing — Payment at milestones throughout a project
• Payment plans — Agreed installments for larger invoices
• Disputes — Client pays the undisputed portion while resolving an issue
• Cash flow problems — Client pays what they can now, with the rest coming later

Tracking partial payments

When you accept partial payments, accurate record-keeping is essential. For each payment, note the date, amount received, and remaining balance. Your invoicing software should track this automatically and show the outstanding amount. Without clear records, it's easy to lose track of what's still owed—especially across multiple clients.

Should you accept partial payments?

It depends on the situation. For planned arrangements like deposits or milestone billing, partial payments are standard and help manage risk on larger projects. For clients who can't pay in full, accepting a partial payment is usually better than getting nothing—but set clear terms for when the balance is due. Be cautious about letting balances drag on, as older debts become harder to collect.