What is expiration?

A definition of maturity is the day on which the term granted for the payment of a debt or obligation. Setting the maturity gives the payment commitment the essential predictability for the proper organization of business. The expiration implies that there is a specific moment in which the creditor You have the possibility to claim the fulfillment of the obligation contracted.

In the event that this is not the case, the debt can be renegotiated, replacing it with a new one or claimed before the corresponding courts.

Expiration concept

The due date of a payment is the date on which a period set between several parties ends, where the parties involved must satisfy the contractual obligations. In most situations, maturity leads to some type of financial settlement or type of payment.

In financial terms, the maturity is usually used for the payment of goods and services or the payment of credits. It refers to the time of each month or instance of the term in which one of the parties must pay an agreed amount of money. These maturities are often used to pay for services, loans or fees. It can also be interesting to know the expiration of a check, both for the one who collects it and for the one who extends it. And it is that they do not have an unlimited life and there are a series of terms from the date of issue to be able to collect it, which range between 15 days and 60 depending on the country in which it was made.

Although deadlines can be flexible and a later credit opportunity is sometimes provided for the purpose of canceling the shipment, there may also be legal penalties or even penalties. All this must appear in advance in the conditions of the contract.

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