Is loan disbursement done in a lump sum or instalments?

Funding for a business loan can often be paid out both in one payment and in instalments, depending on the loan type and agreement. Generally, a term loan will be disbursed on one occasion, allowing you to access all the funds so you can complete whatever you intended to do (buy equipment, grow the business, or cover a major cost). The one time disbursal is called a lump sum disbursement. It is generally how a term loan will work, often if you need cash immediately, you would be receiving that cash in one payment as a lump sum for your planned use.  

On the other hand, you will receive instalment disbursement for the loan. Some loans will pay for working capital, or project finance, and those will likely disburse in instalments, paying a percentage of your loan amount but, not total amount, as a lump sum amount.  Many lenders will attach their instalment payments to project phases, or cash flow circumstances. If you are building a new space, the lender may disburse you an amount before the main start of the project and then at the completion of each project phase, for example. This may give you some reasonable assurance that the lender will have some oversight on how their funds are spent, on the other hand, it reasonably assures the lender that you will be using the funds for their intended purpose too.