What does balloon payment mean?
A larger final payment deferred to the end of an agreement, often used to reduce monthly payments.
The exact meaning can vary depending on the asset, lender criteria, agreement wording and business circumstances.
Related finance product
Commercial Vehicle Finance
Funding for vans, HGVs, trucks, trailers, pickups, minibuses and specialist business vehicles.
Written by: Hart Asset Finance
Reviewed by: T & L Leasing Limited trading as Hart Asset Finance
Last reviewed: