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Partial Pay

Partial payment means a payment that is less than the full amount due. Other terms for partial payment include part payment, installment payment, down payment, or upfront payment.
Partial pay can occur in many different situations, including:
  • Service Orders: Partial payments are made when a service order is placed and the rest of the payment is delivered after service completion, such as for contractors. This helps to motivate the service supplier to complete work on time and as expected. It also helps guarantee payment from a customer.  
  • Installment Accounts: A specific amount of money is borrowed and set payments are made on the account. Common examples are car loans and large appliance purchases.
  • Revolving Accounts: A borrowed amount up to a specific limit with payments varying depending on how much is borrowed. Credit cards and home equity lines of credit are examples of revolving accounts.
  • Real Estate Deal: Buyers make an upfront payment that goes toward the whole property value. The remaining balance is fulfilled through a mortgage loan. 
  • Business Takeovers and Mergers: Partial pay is agreed upon and issued as a security measure on the buyer’s side. This allows the buyer to withhold the remaining sum of money to offset negative circumstances affecting the company being purchased.