What is a maturity date?
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Definition
A maturity date is the day a loan's term ends, when everything still owing on it, both the remaining principal and any interest, has to be paid. On a loan repaid in regular instalments little may be left by then, while an interest-only loan or one with a balloon payment leaves a large amount due on that date.
The maturity date belongs in the loan's details in the books, next to the lender, the amount borrowed and the repayment schedule. It also affects how the loan is usually presented on the balance sheet, with the part due within 12 months of the balance sheet date generally shown as a current liability and the rest as long-term, though your accountant can confirm the presentation. As the maturity date comes within 12 months, more of the balance usually moves into current liabilities, even though nothing about the loan itself has changed.
A large amount due at maturity also needs a place in the cash flow forecast well ahead of time, so the business can see where the money to pay it is expected to come from.
In Australia
business.gov.au's glossary describes the maturity date as the date a loan's term runs out, at which point whatever principal and interest is still outstanding has to be paid. It defines principal as the part of the original amount still owing, leaving out interest, and a balloon payment as a final lump sum due under a loan agreement.
Its guide on getting a business loan includes the loan term, meaning how long you will take to repay, among the things that differ from one loan to another.
Its glossary sets the line for a current liability at 12 months, and its balance sheet template treats loans that are not due for a year or more as long-term liabilities.
Worked example
| Balance sheet date | Current liability (AUD) | Long-term liability (AUD) |
|---|---|---|
| 30 Jun 2024 | 0.00 | 50,000.00 |
| 30 Jun 2025 | 0.00 | 50,000.00 |
| 30 Jun 2026 | 50,000.00 | 0.00 |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Leaving a loan that falls due within 12 months under long-term liabilities without asking your accountant how it should be shown.
- Not recording the maturity date anywhere, so a lump sum arrives as a surprise.
- Reading only the regular repayment in the loan agreement and missing the final amount due.
Related terms
Related service
Management and cash-flow reports
Monthly reports that show where the business stands.
Sources
- Key financial terms
business.gov.au, Australian Government. Current at 15 October 2026, released 9 July 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Apply for a business loan
business.gov.au, Australian Government. Current at 16 October 2026, released 18 February 2026. Checked 16 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Leasing or buying vehicles and equipment
business.gov.au, Australian Government. Current at 16 October 2026, released 23 October 2024. Checked 16 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Set up a balance sheet
business.gov.au, Australian Government. Current at 15 October 2026, released 18 January 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.