Balloon Payment
How it Works
- Purchase equipment for set term at fixed monthly payment
- At disposition a final (balloon) payment is due
- Ideal for companies with a good financial setting
Benefits
- You own the equipment
- Lowers your monthly payments
- Maximizes your operating cash
- Optimal for businesses forecasting increased cash flow
Example
| Unit | 2020 Utility 3000R w/o unit = $54,000 |
| Term | 72 Months |
| Residual | 21% |
| Rate | 6.25% |
| Monthly Payments | $782 |
| Total Interest | $13,106 (TI) $11,582 (BP) |
| Total Cost | $67,106 |