Balloon Note

Business, Legal & Accounting Glossary

Definition: Balloon Note


Balloon Note


Full Definition of Balloon Note


A long-term loan, often a mortgage, that has one large payment (the balloon payment) due upon maturity. A balloon note will often have the advantage of very low interest payments, thus requiring very little capital outlay during the life of the loan. Since most of the repayment is deferred until the end of the payment period, the borrower has substantial flexibility to utilize the available capital during the life of the loan. The major problem with such a loan is that the borrower needs to be self-disciplined in preparing for the large single payment, since interim payments are not being made. Balloon notes are often undertaken when refinancing or when a major cash flow event is anticipated. also called bullet loan or balloon loan.


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Balloon Note. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 04, 2021 https://payrollheaven.com/define/balloon-note/.
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Balloon Note. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/balloon-note/ (accessed: December 04, 2021).
American Psychological Association (APA):
Balloon Note. PayrollHeaven.com. Retrieved December 04, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/balloon-note/

Definition Sources


Definitions for Balloon Note are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.