2 min read
Definition
Acceleration is the lender exercising its contractual right, following an event of default, to demand immediate repayment of the entire outstanding balance plus accrued interest.
In plain terms
It is what gives default clauses their bite: instead of owing this month’s instalment, you suddenly owe everything.
Why it matters for your company
Because acceleration can follow a covenant breach even when you are paying on time, monitoring covenants is a survival task, not paperwork. See financial covenants.
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