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Getting paid

Part Payment

The short answer

A part payment is any amount a client pays toward an invoice that’s less than the full balance. It leaves the invoice open for the remainder — track it against that specific invoice, not as a separate, unlinked transaction.

What it means

Clients pay in part for all kinds of ordinary reasons — they’re waiting on their own payment to clear, they’re spreading a big bill over two paydays, or there’s a genuine dispute over one line item while the rest is fine. However it happens, the invoice’s status should move to reflect exactly how much is still owed, not just “paid” or “unpaid.”

The habit that matters here is linking the payment to the invoice it belongs to, with a note on what’s still outstanding and by when. An unlinked partial payment sitting in your records as just “a deposit from Dave” is how a business loses track of who actually still owes what.

For example

An $800 invoice gets a $500 part payment on the due date, with the client asking for a week on the rest. You record it against that invoice — balance now $300, new informal due date noted — rather than as a separate, unexplained $500 entry.

The mistake to avoid

Accepting a part payment and mentally marking the invoice as “basically settled” — the $300 that’s still owed quietly falls off your radar until months later, if it ever gets chased at all.

See also

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BizBinder keeps quotes, invoices, deposits, and reminders in one binder, so using the right term is the least of it — the underlying habit runs itself.