Typically, the balloon payment is equal to the. Pros and Cons of Balloon Payments on a Promissory Note – A balloon payment is one structure to consider for promissory note repayment. read about the pros and cons of this type of loan, so you can make the choice that makes the most sense for your business.
A promissory note that includes a balloon payment is a repayment structure that has the borrower paying both regular (e.g., monthly) payments and one or more larger (or "balloon") payments. The balloon payment or payments typically come at the end of the repayment period.