The date when the full remaining balance becomes due under the agreement.
For example, a business that finances $120,000 in equipment on a 48-month term has a maturity date of August 1, 2028. On that date, any remaining principal balance is due — meaning if the loan has been paid normally, the balance should be zero, but an early renewal or balloon arrangement would require a final payment.
Why it matters: It is the deadline for full repayment or refinancing; failing to plan for a maturity date can force a distressed liquidation.
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