In a typical case, a lump sum recipient will be required to pay interest on the funds in a lump sum basis. This means that the recipient must repay the entire amount of the payment to the donor at the end of the term. Alternatively, if the recipient chooses to receive payments, then the recipient can defer the interest charges. This is advantageous because the recipient has an additional option and can still manage the fund after it is given to them.

Payments have been very popular among many people with limited means. However, they are more suited to the need of those with stable incomes that have steady monthly incomes.

A lump sum recipient can benefit from receiving interest. It is beneficial because the recipient will be able to make the payment when they have the funds. This means that the funds will not accumulate interest over time since the money is already available.

There are some disadvantages to receiving payments, however. The recipient has to pay the interest on the funds that are received in a cash basis. With a lump sum recipient, the recipient can use the payment to buy things that they want or do not have enough money for. In addition, with a cash basis, the recipient has to return the money in a lump sum when they have reached the end of the term.

The benefits of receiving payments are the same as those of a lump sum. They offer the recipient the ability to spend the money after receiving the funds. They also give the recipient options, such as paying the loan off early or receiving regular payments. However, if the recipient has any other type of income, then a lump sum will always be more desirable.

The choice between the two options is up to the recipient. It is important to understand that while the recipient may receive a lump sum in payments, there is an extra amount to pay the interest on the money at the end of the term. When this is factored into the total, it is usually more costly to receive payments and less costly to receive a lump sum.

There are advantages and disadvantages to both options. For those who desire the flexibility of a lump sum, receiving a lump sum is the best option.

However, it is important to consider the costs associated with receiving a lump sum versus receiving payments. For those that receive the latter, they will generally want to pay the interest charges back when they reach the end of the term, whereas for those who receive the former, they will want to make the payments and avoid the costs associated with making payments.