A/R Finance & Factoring Terms GLossary
What isBalloon Loan
A balloon loan is a type of loan often used when purchasing real estate, auto loans or acquiring a business. Interest rates are typically low and payments are made over a short period of time, approximately five to seven years. This is accomplished by requiring one large payment at the end of the lending period called a balloon payment. Balloon loans give the borrower favorable upfront terms, but also create an additional risk of one large payment at the end that maybe difficult to make.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "B"
- B2B, B2C & B2G Sales
- Bad Credit Business Loans
- Balance Sheet
- Bankruptcy
- Bill & Hold
- Bill of Lading
- Blind Shipment
- Bookkeeping
- Bootstrapping
- Borrowing Base
- Break-Even Point
- Bridge Loans
- Burn Rate
- Business Acquisition
- Business Credit Protection
- Business Credit Report
- Business Credit Score
- Business Line of Credit Requirements
- Business Loan