Maturity date

When an invoice comes due for payment.

Why it matters

If an invoice is not paid by the maturity date, it may enter the chargeback process or trigger a reserve hold. The maturity date marks the point at which the factor expects to recover the advance amount, either from the customer or from the seller through repurchase. In some programs, the maturity date is the trigger for beginning the recourse period clock; in others, it is the end of the recourse period. Sellers should confirm exactly how the maturity date interacts with the recourse and chargeback provisions in their agreement to understand the timeline for resolving unpaid invoices.

How it appears in contracts

The maturity date for each funded invoice is tracked in the factor ledger and typically referenced in the Recourse or Chargeback section of the factoring agreement. The agreement should specify whether the maturity date is calculated from the invoice date, the invoice due date, or the funding date. Some programs set the maturity date equal to the invoice due date plus a grace period. When the maturity date passes without payment, the factor typically issues a past-due notice to the seller and may reduce the credit limit for the account debtor pending resolution.

Related terms

Related article: What is invoice factoring?

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.