Essential Business Documents & Financial Terms

Understanding Essential Business Documents

Order: A document detailing the items a customer demands and the conditions of purchase. Through this order, it is communicated to the selling company that a good or service will be acquired.

Waybill: A document that details and justifies the delivery of goods made to the customer.

Invoice: A document that legally proves services rendered or the sale of goods.

Types of Payments & Checks

Cash Payment: A payment that takes place at the same time as the delivery of goods or services.

Term Payment: A payment that is made at a later, agreed-upon time.

Understanding Checks

Check: A document instructing a financial institution to pay a certain sum of money to the person designated as the payee or the bearer.

• Bearer Check: Can be paid to any person presenting it for collection.
• Nominal Check: The name of the recipient is written, and it can only be cashed by this specific person, who must be identified with an accrediting identity document.
• Crossed Check: Can only be collected by crediting the amount to a checking account.
• Certified Check: The bank certifies that the check data are consistent and that the specified amount is locked in the current account until it is collected.

Bills of Exchange & Related Terms

Bill of Exchange: A document whereby one person (the drawer) orders another person (the drawee) to pay, at a specified date (maturity), a sum of money, usually via a third person (the holder).

Aval: A person who undertakes to pay the bill of exchange in the event that the drawee does not fulfill their obligation.

Endorsement: A clause by which the drawer can transfer ownership of the bill of exchange to another person.

Protest: Serves as proof that the drawee did not pay the bill of exchange at the time it was due. It should be formalized by a public deed.

Government Aid & Support

Aid: Financial or other support that can be conceded by authorities to community, state, regional, and local entities.

According to the forms they take, aid may include:

• Financial subventions
• Tax reductions or exemptions
• Low-interest loans
• Bonuses in social security contributions
• Transfers of property or land

Leasing Contracts Explained

Leasing Contract: A transaction whereby a company acquires an asset in its name and leases it to another company, which uses it and pays regular quotas in exchange.