Financial Terms Glossary

Balloon Payment

Formal

For a rental/lease contract, a significant 'final' payment, much bigger in size than regular payments, that matches the end of life value of the asset being rented / leased. Its purpose is to reduce the monthly payment being made through the life of the contract, and offset the impact of the large final payment by re-sale of the asset itself.

Informal

You want to have a car, but need to keep the monthly payments down. The car costs $20,000. The instalments to pay fully for this over 36 months are about $450, but the car is worth money after 3 years. You want payments that don't fully pay for the car over 3 years, because you will be selling this at the end of the 3 year period for $10,000. So, change the payment profile to 35 @ $225 and a final 'balloon' payment of $10,000 which you should be able to settle from the car sale proceeds.

What we do

At Shark Finesse we have developed an enterprise-grade cloud application to help businesses standardise and simplify their value engagements across the entire customer journey.

Shark, a business value engagement platform used by 1000’s of customer-facing teams globally (e.g. pre-sales, sales, value teams, and customer success) is easy to use, intuitive and usable directly with the customer to negotiate the likely business returns from investing in a solution.

By adopting the Shark approach you will fundamentally transform conversations with new and existing customers, close more business, and differentiate from the competition.
Find out how

We'd love to hear from you!

Phone
+44 (0)1256 338635
Address
Grove House, Lutyens Close
Basingstoke, Hampshire
RG24 8AG, UK