NEVER PAY A XXX UPFRONT
As Three Blades wisely observed in another thread, this is a
loan. Loans have credit risk unless you have (good) collatarel security or covenants or if you opt for an escrow arrangement.
Whether it's a holiday, a kitchen or a flying course this risk will be present. It may be reduced by insurance, associations, payment methods and government credit legislation, or
zilch.
Bankruptcy exists for good reasons for both individuals and companies. There's often little or no reason to vilify the parties involved. And it does happen. Caveat emptor.
Note: if a discount for bulk upfront payment equates to an APR that seems excessive then this tells you something about the counterparty.