When financing owner-occupied commercial real estate, many small businesses secure long-term financing through their bank.  While their payments are usually based off of a 20-year amortization, the actual term (length) of the loan might be less, resulting in a balloon payment (a larger-than-usual one-time payment at the end of the term of the loan).  Depending on the timing of the balloon payment, this could mean that about 60% of the original loan amount would become due. - more