A lump sum, or lump-sum payment, is a single payment for the full amount of a debt or obligation rather than creating an installment plan or series of payments. This kind of payment often occurs with investments, legal settlements, taxes, debts, and other financial transactions. Offering a lump sum helps to resolve a debt quickly with a one-time payment, making it an attractive option for lenders who may otherwise have difficulty collecting funds. A lump sum can provide peace of mind that the debt will be paid off in its entirety at once.