I think that MJR has a point.
It's long been the practice, that is in all the time that I've been in aviation (15 years plus), to offer a discount for up front payment.
I don't see whats wrong with that. It brings the FTO's cost down, and that is reflected in the rate.
Naturally there is a risk, and the trick is to try and establish how big a risk it is. Putting down a grand for hours building, knowing that you'll fly that off in a month is to me an acceptable risk. I would not be so inclined to put money down that's going to take months and months to use up as the risk therefore increases.
Like all things, it's a case of evaluating the benefit versus risk, and it might be worth the risk in some cases. Always worth sniffing around, asking searching questions. If it looks iffy, you know the risk is greater. If it's a sound FTO, busy club, been around for ages etc, no guarantee, but probably reduces the risk.
Each one to their own, and this is my point of view.
PS