How to Handle Part-Payments: Accepting Money Without Losing Leverage

A part-payment can feel like progress, but it can also be a trap if it knocks your momentum, muddies the paperwork, or signals you will accept “something” instead of the full amount. With late payment costing the UK economy almost £11 billion a year and businesses being owed an estimated £26 billion in late payments at any given time, you cannot afford sloppy collection habits. That is why Taurus Collections will always tell you the same thing: take the money, but take it on your terms.

This guide shows you how to accept part-payments while keeping leverage, keeping your evidence clean, and keeping the pressure where it belongs. If you’re worried about how persistent follow-ups can be (from either side), it’s also worth understanding how many times a debt collector can call me in one day so you stay confident and compliant when the chasing ramps up.

What a part-payment really means

A part-payment usually falls into 1 of these buckets:

• They are cash-tight but willing (you can often recover the rest with the right plan).

• They are delaying (they pay a little to stop you escalating).

• They are disputing (they want you to accept a “settlement” without saying it out loud).

• They are insolvent or close to it (you need to move fast and protect your position).

Your job is to identify which scenario you are in before you “thank them for the payment” and move on.

The core rule: accept it, but control the narrative

When you accept a part-payment, you want 3 things to be true:

• It is clearly recorded as a part-payment, not “full and final”.

• It does not pause escalation unless you choose to pause.

• It strengthens your case, not theirs.

That comes down to wording, process, and deadlines.

Step 1: Acknowledge the payment in writing, clearly

As soon as it lands, reply with something simple and firm:

• Confirm the amount received (for example, £1,500).

• Confirm the balance outstanding (for example, £6,840.50).

• Confirm what happens next (payment plan, deadline, or escalation).

You do not need to be aggressive. You do need to be unambiguous.

Why it matters: part-payments are often used to create confusion later. “We paid you, you accepted it” is not a defence to the balance, but it can drag the conversation into noise if your records are weak.

Step 2: Never let a part-payment rewrite the deal

If they say, “We’ve paid £1,500 to settle this,” you should not ignore that line. You should correct it immediately.

Use a clear statement such as:
“We accept £1,500 as a part-payment only. The full balance of £6,840.50 remains due.”

If you stay silent, you risk the debtor building a story that the payment was accepted as settlement. You can still dispute it later, but you have just made your life harder for no reason.

Step 3: Match the part-payment to a specific invoice or keep it unallocated

This is where businesses accidentally lose leverage.

If you allocate the payment to the newest invoice, you may leave older invoices ageing, which can weaken your position commercially and operationally. If you allocate it to an invoice that is disputed, you may unintentionally signal you accept their dispute logic.

A practical approach:

• If there is no dispute, allocate to the oldest overdue invoice first.

• If there is a dispute on 1 invoice, consider allocating to undisputed invoices and keep the disputed amount separate.

• If you are unsure, record it as “unallocated part-payment” pending written confirmation.

The goal is to keep your ledger clean and your claim simple.

Step 4: Do not pause escalation without a written plan

Debtors love this pattern:

• Promise a larger payment “next week”.

• Send a small payment “to show goodwill”.

• Go quiet again.

If you pause every time, you train them that small payments buy time.

Instead, set a rule:

• If they want you to pause escalation, you need a written plan with dates and amounts.

• If they cannot commit to dates, they are not offering a plan. They are offering delay.

Step 5: Use late payment tools properly (without getting emotional)

In the UK, you may be able to claim statutory interest and fixed compensation on late commercial payments (depending on your contract and circumstances). The UK Government guidance sets fixed compensation at:

• £40 for debts up to £999.99

• £70 for debts from £1,000 to £9,999.99

• £100 for debts of £10,000 or more

You do not always need to “go in heavy” with this straight away, but it is leverage. It also changes the debtor’s calculation: dragging it out costs them more.

A good way to use it is as a clear line in your statement of account, so the debtor can see the balance is not static.

Step 6: Watch for insolvency risk and act fast

Part-payments can be an early warning sign that the business is struggling. UK company insolvencies are not rare, and in 2025 there were 23,938 registered company insolvencies.

If your debtor is paying in drips and drops, do not assume “they will catch up”. Look for signs like:

• Changing excuses every week

• Avoiding calls but sending small payments

• Asking you to “re-issue invoices” repeatedly

• Sudden disputes raised late in the day

• Requests for long payment plans with no detail

If you suspect they are near the edge, your leverage comes from speed and structure, not sympathy. You can be polite and still be firm.

Step 7: Protect yourself against “preference” worries (practical, not legal theatre)

Some creditors hesitate to accept part-payments because they have heard that payments can be challenged later if a company enters insolvency. The reality is: you still need to collect what you can, but you should keep your conduct clean.

That means:

• Keep communications factual and consistent.

• Avoid side deals that are not documented.

• If they are proposing unusual payments (for example, paying from a different company), get clarity in writing.

You are not trying to out-lawyer anyone. You are trying to avoid creating messy facts.

Step 8: Escalate in a way that makes the next step easier

If part-payments continue without resolution, your next step should be simple: a clear final demand, a Letter Before Action, or formal recovery.

What makes escalation work is having a neat file:

• Contract or terms

• Invoices

• Proof of delivery or completion

• Statement of account

• Clear record that part-payments were accepted as part-payments only

When your evidence is tidy, debtors know you are not bluffing.

Simple part-payment rules you can apply today

If you want a quick internal policy, use this:

• Accept part-payments, but confirm in writing they do not settle the balance.

• Allocate payments intentionally, not randomly.

• Do not pause escalation without a written plan.

• Set 1 next deadline every time (date, amount, consequence).

• Keep disputes separate from undisputed balances.

• If the pattern looks like delay, escalate earlier, not later.

Late payment is not just annoying, it is expensive. It contributes to business closures and drains time you should spend on growth. Your leverage comes from being calm, consistent, and structured.

Next steps

If you are getting part-payments but the balance never seems to disappear, Taurus Collections can help you tighten the process, stop delay tactics, and move the debt towards a clean outcome. Speak to Taurus Collections and turn those drip-feed payments into a proper recovery plan that actually clears the ledger.