balloon loan

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Related to Balloon Notes: Balloon Loans

balloon loan

n
(Accounting & Book-keeping) a loan in respect of which interest and capital are paid off in instalments at irregular intervals
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Dixon added that the benefits of SBA lending include: lower down-payment requirements, which in turn, preserves cash for working capital; longer amortizations, which helps clients with improved cash flow; and, no balloon notes that provide access to long-term permanent capital.
Balloon notes that call for the payment of interest only currently are an attractive way to provide liquidity without the immediate burden of substantial loan payments.
Balloon notes that provide only for the payment of interest will enhance borrower's liquidity.
It also imposes substantive limitations, such as restrictions on short-term balloon notes, on certain home equity loans with rates and fees above a certain percentage or amount.
Loans used to refinance balloon notes and other unamortized debts are grandfathered over the shorter of the old loan term or 30 years.
The solution can be used with various products such as leasing, balloon notes, auto lending and many direct products including credit cards and home equity loans.
Short repayment terms or balloon notes place additional pressure on cash flow.
Operating in the United States as Volkswagen Credit, Audi Financial Services, and Bentley Financial Services, the company provides a full range of retail and wholesale financial services including retail loans, leases and balloon notes, as well as dealer floor planning, mortgages and capitalization loans.
While the relationship with these credit unions has changed for indirect automobile lending, we look forward to our continued relationship with them through our direct automotive sales, leasing, balloon notes, financial services and mortgage products.
Hence the Board and HUD proposed that balloon notes covered by HOEPA might be further restricted, for example, either by applying stronger prohibitions to a subset of these loans or by prohibiting balloon notes for these loans altogether.
Aimbridge Indirect Lending, a division of The Aimbridge Group, is a financing channel that connects credit unions with an automotive dealer network to provide members and potential members with auto loans, leases and balloon notes.
Hence the Board believes that HOEPA balloon notes should be further restricted either by lengthening the prohibition period, applying stronger prohibitions to a subset of HOEPA loans, or prohibiting HOEPA balloon notes altogether.