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Trust Modarba

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2020-01-29
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2.25 2.25 2.25 2.25 2,500

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Balloon Loan

A loan that is structured so that a business owner makes regular repayments on a predetermined schedule and one much larger payment, or balloon payment, at the end. These can be attractive to new businesses because the payments are smaller at the outset when the business is more likely to be facing strict financial constraints. However, be sure that your business will be capable of making that last balloon payment since it will be a large one.

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