When Should Entrepreneurs Consider Balloon Payments?
Balloon payments can be a viable option in specific scenarios: 1. High-Growth Projections: If the entrepreneur is confident that their business will experience significant growth, making it easier to cover the large final payment. 2. Short-Term Needs: When the financing is needed for a short-term project, and the entrepreneur expects to pay off the loan quickly. 3. Real Estate Ventures: Often used in real estate financing, where the property can be sold or refinanced at the end of the term to make the balloon payment.