Partial Payment Invoice Template
A partial payment invoice allows for an owed balance to be paid in increments. It is used in contracting, for example, where long projects are invoiced multiple times throughout construction until a final invoice is sent containing the previous balances paid and the final balance due. Another use case would be an advertising campaign that extends over several months; every month, the advertiser would invoice the client for a portion of the total agreed-upon advertising campaign.
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How to Use a Partial Payment Invoice
When using a partial payment invoice, the recipient must be provided with the scope of the total amount due and their current progress with payments with each invoice sent. This is crucial for two (2) reasons, 1) it makes the client trust the company issuing the bill, and 2) it aids in both organization and accounting on behalf of the issuer. Using a partial payment invoice is very similar to that of a standard invoice. It will include the parties’ contact information, a list of the services rendered, the terms, and how the client can make payment. In many cases, businesses and freelancers allow clients to make partial payments towards an owed invoice balance on a case-by-case basis. In some situations, clients may have the money on hand and ready to pay off the total bill but choose to spread payments over several months to maintain a strict weekly or monthly budget. For recently established companies, allowing partial payment is highly recommended to avoid unnecessary conflict and confusion with newly acquired customers.