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  3. Law: Taxation & Customs

Garantías

English translation: vendor guarantees

16:54 May 3, 2020
Spanish to English translations [PRO]
Law/Patents - Law: Taxation & Customs
Spanish term or phrase: Garantías
This is for a document from Colombia on e-invoicing, and the practice of "factoring", i.e. third party entities that provide credit to Colombian companies based on outstanding invoices to give them greater liquidity. So the invoices act as collateral. This entry is part of a bullet point list of "events", which are a invoice statuses or alerts for factoring agents to advise them of possible problems and to authenticate invoices to prevent fraud.

Colombian Spanish to US English

Here's the definition:
Garantías sobre la factura de venta como título valor: Son los eventos que impiden la circulación de la factura y que respaldan el crédito de un tercero, informado por el interesado.

Surety? Security? Pledge? Promise? Lien? Warranty? None of the seem to quite fit the bill.

ORIGINAL
Garantías sobre la factura

ROUGH DRAFT
_________ on/against the invoice.
S Ben Price
Spain
Local time: 01:17
English translation:vendor guarantees
Explanation:

What Are Vendor Guarantees? - Factoring
www.comcapfactoring.com/blog/what-are-vendor-guarantees/
Selected response from:

bigedsenior
Local time: 16:17
Grading comment
Selected automatically based on peer agreement.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +3vendor guarantees
bigedsenior
4Factoring guarantees
AllegroTrans
Summary of reference entries provided
Ref.
Taña Dalglish

Discussion entries: 1





  

Answers


19 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
vendor guarantees


Explanation:

What Are Vendor Guarantees? - Factoring
www.comcapfactoring.com/blog/what-are-vendor-guarantees/

bigedsenior
Local time: 16:17
Specializes in field
Native speaker of: English
PRO pts in category: 125
Grading comment
Selected automatically based on peer agreement.

Peer comments on this answer (and responses from the answerer)
agree  EirTranslations
10 mins
agree  Michael Grabczan-Grabowski: That's a good one. The link explains it well. I have found an alternative: "vendor assurances"; however, it seems "vendor guarantee" is the term that's mainly used.
1 hr
neutral  philgoddard: Maybe, but it doesn't say " vendor", and nor does it define "los eventos que impiden la circulación de la factura".
1 hr
agree  Salwa Awaad
15 hrs
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11 days   confidence: Answerer confidence 4/5Answerer confidence 4/5
Garantías sobre la factura
Factoring guarantees


Explanation:
Warranties and Guarantees | Factoring Companies Guidebook
www.invoicefactoringquotes.co.uk › guidebook › warr...
Why Us? Invoice Factoring and Invoice Discounting is our speciality. Our independent online advice will help you find the facility you want. Why Us ...
Rating: 5 - ‎4 reviews

Factoring (finance) - Wikipedia
en.wikipedia.org › wiki › Factoring_(finance)
Factoring is a financial transaction and a type of debtor finance in which a business sells its ... many factoring companies will have monthly minimums and require a long-term contract as a measure to guarantee a profitable

What Is Factoring | Invoice & Debt Factoring | MarketFinance
marketfinance.com › business-finance › what-is-factoring
Security – debentures, personal guarantees and warranties. Invoice factoring companies will almost always require security to set up a new facility with a ...

AllegroTrans
United Kingdom
Local time: 00:17
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 73
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Reference comments


12 mins peer agreement (net): +3
Reference: Ref.

Reference information:
Accounting for invoice factoring - Accounting and Audit ...www.mondaq.com › credit-control-and-cashflow › acc...
What is invoice factoring?
Invoice factoring (or receivables financing) is a legitimate form of financing that allows a company to sell its accounts receivable (i.e. unpaid invoices) to a third party financial institution or investor (known as a factor) for a lump sum amount, to improve the company's working capital. This provides the company with immediate funds that can be used to alleviate cash flow pressures and pay expenses.

Traditionally used as a short-term solution for companies under financial stress, invoice factoring is also appealing to companies wanting to grow their business, as it allows for working capital to flow more consistently and provides access to funds that would otherwise be tied up in ledgers. It is particularly attractive for companies with slow paying customers and/or extended payment cycles, and offers an alternative to traditional finance.

Recovery of debts—the contractor could owe amounts to the Commonwealth (e.g. liquidated damages, royalties, or refundable non-recurring engineering costs) and many Commonwealth contracts contain provisions allowing a reduction in contract price commensurate with debts due by the contractor. Assigning invoices to the factor may prevent the Commonwealth from exercising any right to "set off". The Commonwealth may need to pursue payment of contractor debts through more traditional means, which may lead to other issues should the contractor enter external administration.

Final thoughts
Invoice factoring is gaining popularity for companies that require enhanced cash flow to strategically grow their business or avoid financial distress, so it looks like it's here to stay. While it bears some similarity to traditional financing by securing accounts through general security agreements, the outright transfer of the receivables attracts its own unique issues.

Though unlikely to offer complete protection, the Commonwealth would be well-advised to retain the "no assignment without consent" provisions in contracts, so the contractor remains obliged to seek approval of any factoring arrangement. It would also be prudent to ensure regular searches of the PPSA register are undertaken (in conjunction with any audit powers concerning the financial information of the contractor) to get a better picture of a contractor's financial position. Other notice and negative covenant clauses may also be appropriate depending on the particular circumstances.

Taña Dalglish
Jamaica
Native speaker of: English
PRO pts in category: 82

Peer comments on this reference comment (and responses from the reference poster)
agree  EirTranslations
20 mins
  -> Thank you Eir, as always.
agree  Adrian MM.: Unless moderated = censored, no otiose comment - paradoxically - had been added hereto, for the attention of any layman or (photogenic) -woman. Otherwise, it's difficult to break (office politics) habits of a lifetime.
33 mins
  -> Thanks Adrian. Appreciate it. Stay safe /BTW: I enjoy reading your entries, but seriously, for the layman, like me, and I hope I am not being rude, try keeping it simple (neutral language) w/out the extraneous stuff!/What??/Office politrics!/Try nuh?
agree  Lydia De Jorge
3 hrs
  -> Thank you Ly, as always. Appreciate your support.
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