Balloon Payment
Balloon Payment is a large, lump-sum payment scheduled at the end of a series of considerably smaller periodic payments, a term relevant in structured financing agreements.
Benefits
A balloon payment allows businesses to make smaller payments now. It helps manage cash flow better in the early stages.
Frequently Asked Questions
What is lump sum balloon payment?
A balloon payment is a big one-time payment made at the end of a loan term. It follows smaller, regular payments made throughout the loan`s life.
How do you value a startup pre revenue?
Startups without revenue are valued based on factors like team, technology, and market potential.
Which valuation method is best for startups?
For startups, the best valuation method depends on factors like stage, industry, and available data.
Key Takeaway
A balloon payment lets you pay less month by month. Then, you pay a big amount at the end.