What Is Baloon Payment

Surmodics (NSDQ:SRDX) said today that it’s due for a $10 million milestone payment from Abbott (NYSE:ABT) after closing.

A balloon auto loan or residual payment loan is a loan in which monthly payments are made for a certain amount of time, ending with a lump sum payment to the lender at the end of the loan term. With a balloon loan, the buyer pays interest on the vehicle over the loan term and the principal in a lump at the end of the term.