Law firms usually have three ways to spread the cost: smaller, regular payments on account while the matter runs, an instalment plan against a bill once it's delivered, or part payments above a minimum you set. Each puts the money and the risk in a different place, so the choice tends to depend on the matter and the client. Agree it in writing at the start, keep it interest-free and simple, and decide up front what happens if a payment is missed.
In this article
The short version
- Law firms can spread the cost through staged money on account, an instalment plan on a bill, or part payments.
- Money on account is client money until you bill, so it goes into client account.
- Raise payment options at the start, alongside the estimate.
- Keep plans interest-free and simple, and check the consumer credit rules before charging interest or using a lender.
- Put the amounts, dates and what happens after a missed payment in writing.
Three ways to spread the cost
A client going through a divorce, a dispute with a former employer or an estate with no cash in it yet may be able to pay £300 a month but not £2,400 in one go. The options look similar from the client's side. From the firm's side they work quite differently.
| Option | When the money arrives | What to watch |
|---|---|---|
| Staged money on account | Before the work, in regular amounts | It's client money until you bill, so it goes into client account |
| Instalment plan against a bill | After the work, on agreed dates | The firm has done the work and is waiting for the money |
| Part payments above a minimum | After the bill, whenever the client pays | No fixed timetable unless you agree one |
Staged money on account suits matters with a predictable run of work, such as an uncontested divorce or a probate where the stages are clear. The client builds up funds ahead of each stage and you're not carrying unpaid time. Because money on account of costs is client money until you bill for it, the payment route has to fit your client account procedures, and that's worth checking with your COFA before you set it up.
An instalment plan works the other way round. You bill as normal, then agree that the bill is paid over, say, six months. It's often the more natural fit when the cost has arrived at once, such as a completed piece of advice or a final bill on a contested matter. The trade-off is that the firm has already done the work, so a missed payment is money you're owed for time already spent.
Part payments give the client the most flexibility. They pay what they can when they can, above a minimum you choose, and your reminders keep going until the balance is cleared. This can suit a client whose income is irregular.
How to raise it with the client
Clients who are struggling may not say so until a bill is overdue. Raising payment options at the start, alongside the estimate, gives them a way to say it early without having to ask. Clients should be clear about what their matter is likely to cost, and a plain word about how it can be paid fits naturally into that conversation.
Ask what the client can manage each month, so the plan starts from a figure they've chosen rather than one worked back from your fee. If the matter is likely to cost more than the plan will cover in a reasonable time, that's useful for both of you to know before the work starts. Keep the offer plain and matter-of-fact, as an ordinary arrangement.
What to put in writing
Whichever option you choose, set it out in the engagement letter or a short letter confirming the plan:
- The total, the number of payments, each amount and each date.
- How each payment will be made, for example by direct debit or a payment link.
- What happens if a payment is missed: it's added to the next one, the plan runs a month longer, or the balance becomes due.
- Whether work continues while the plan runs, and what happens if the matter costs more than estimated.
Keep plans interest-free and simple. Check the consumer credit rules before you charge interest or fees for time to pay, or use a third-party lender to fund a plan.
How to run a plan without chasing it by hand
A six-month plan is six payments to collect and six entries to match against one bill. When someone has to remember each date, it's easy for one to slip during a busy month.
Adfin lets you turn a bill into an instalment plan, with each payment collected by direct debit or paid from a payment link, and the reminders and matching handled for you. If you'd rather give the client flexibility, you can allow part payments above a minimum you set, and reminders continue until the bill is fully paid. Failed direct debits are retried free of charge, and each payment is matched back to the bill.
Adfin's Customer Agents can also offer an instalment plan to a client who has fallen behind, within rules your firm sets and reviews.
Common questions
Can a solicitor let a client pay their bill in instalments? Yes. Agree the amounts, dates and what happens if a payment is missed, and confirm it in writing.
Can we charge interest on a client's payment plan? Keep plans interest-free and simple where you can. Check the consumer credit rules before you charge interest or fees, or use a third-party lender.
When should we raise payment options with a client? At the start, alongside the estimate, so a client who's struggling can say so before a bill is overdue.
Can money on account be paid in instalments? Yes, many firms take regular smaller payments on account. It's client money until you bill, so it goes into client account.
What happens if a client misses an instalment? Whatever you agreed at the start applies. A failed direct debit can often be retried, but a cancelled mandate usually means it's time to talk to the client.
Is a part payment the same as an instalment plan? No. A plan has fixed amounts and dates, while part payments let the client pay any amount above your minimum until the balance is cleared.
Sources
- SRA - Code of Conduct for Solicitors, RELs and RFLs (accurate as of October 2026) https://www.sra.org.uk/solicitors/standards-regulations/code-conduct-solicitors/
- SRA - SRA Accounts Rules (accurate as of October 2026) https://www.sra.org.uk/solicitors/standards-regulations/accounts-rules/
- Adfin Help Centre - Create and manage instalment plans (accurate as of October 2026) https://support.adfin.com/en/articles/12590049-create-and-manage-instalment-plans
- Adfin Help Centre - Collect partial payments (accurate as of October 2026) https://support.adfin.com/en/articles/13344942-collect-partial-payments-with-adfin
