Partial payment: definition, example, and why it matters

Common for large jobs and customers on payment plans. The invoice stays in 'partially paid' status until the remaining balance is collected. Always record the date and method of each partial payment.

• Short definition. A payment that covers part of an invoice but not the full balance.
• Category. Partial payment is a payments term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds partial payment into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does partial payment mean?

Common for large jobs and customers on payment plans. The invoice stays in 'partially paid' status until the remaining balance is collected. Always record the date and method of each partial payment.

Related terms

• Invoice — A document a business sends a customer requesting payment for goods or services.
• Payment plan — An agreed schedule for paying off an invoice in installments.
• Progress billing — Invoicing a long job in installments tied to completion milestones.