English translation: fund from loans, borrowed capital
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Dutch to English translations [PRO] Bus/Financial - Finance (general)
Dutch term or phrase:financieringsvehikel financieren met schulden
Gunter werkte acht jaar voor de Amerikaanse producent van industriële wasmachines X, die ondermeer het Belgische Y overnam. Toen X een financieringsmaatschappij oprichtte om de investeringen van haar klanten in wasmachines te prefinancieren, stelde zich een probleem. X wilde dit **financieringsvehikel financieren met schulden**, die echter buiten balans moesten blijven om de consolidatie en bedrijfswaardering van X niet te bezwaren.
“Ik betwijfelde of dit de goede oplossing was. Deze twijfel zette mij er toe aan de Executive Master Class te volgen”, zegt Gunter. “Mijn eindwerk leverde het antwoord op.
Het deed er niet toe of X het financieringsvehikel binnen of buiten de balans financierde omdat X de eindverantwoordelijke bleef”.
Not a lot in this sentence makes sense to me (!). "Fund this financing vehicle with debts"? Or is there a better way to phrase it?
It's hard to say whether Special Purpose Vehicle would fit the limited context given, but I don't feel that adding this term is helpful for the reader so I'll stick with this more general version. The "financieringsvehikel" and the
"financieringsmaatschappij" seem to be one and the same thing, so it might even make the translation clearer than the source text to use "finance company" again. Thanks, everyone! 4 KudoZ points were awarded for this answer
I'll drop the subject as it appears that you (plural) cannot understand what I am referring to. I know that the word vehicle has many different meanings. Neither did I comment on the various explanations given. I also did not question the choice. In my comment I erroneously said that they wanted to finance the purchase of stock. In my text however I clearly said that they wanted to finance Sales. The only way to keep it out of the B/S is by way of private funding.
Please refer to Jarry's very clear references and to Chris' comments in the Discussion area. Perfectly acceptable usage of the word 'vehicle' in this context, though I actually used 'finance company', as I pointed out.
@ L.J.Wessel van Leeuwen: None of the answers posted refers to the purchase of a vehicle. I think you're misreading the question. Your own answer is highly speculative as you talk about raising money from family & friends, you seem to know how banks would respond to such a project, and you mention purchase of stock. This is not the place for speculation about the subject matter. 'Financieringsvehikel' refers here as the asker has already stated to a 'financieringsmaatschappij'. It is this company ('vehicle' or 'entity' if you like) that needs funding (you can't provide 'pre-finance' without cash). 'Met schulden' refers to the source of the funding: debt, i.e. borrowed capital. I don't see what you disagree with.
I disagree totally with all the suggestions. It's not the purchase of a vehicle that needs financing but the purchase of STOCK. This can be done by issuing shares/debentures/preference or even by overdraft etc.
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Answers
4 mins confidence:
fund the finance vehicle through debt
Explanation: I suspect it means that the 'finance vehicle' (loans company??) was itself financed by borrowing the money from elsewhere.
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If this interpretation is correct, you could perhaps translate 'schulden' here as 'borrowed capital': funded with borrowed capital.
Chris Hopley Netherlands Local time: 08:57 Specializes in field Native speaker of: English PRO pts in category: 103
Grading comment
It's hard to say whether Special Purpose Vehicle would fit the limited context given, but I don't feel that adding this term is helpful for the reader so I'll stick with this more general version. The "financieringsvehikel" and the
"financieringsmaatschappij" seem to be one and the same thing, so it might even make the translation clearer than the source text to use "finance company" again. Thanks, everyone!
Explanation: They want to finance sales by means of offering finance to their clients. To this end they want to borrow/raise capital. To keep it out of their B?S means that they will have to raise private funds (friends/family) as no bank/finanical institution will accept a backdoor financing.
My suggestion is: To raise private financing
L.J.Wessel van Leeuwen South Africa Local time: 08:57 Specializes in field Native speaker of: English, Dutch PRO pts in category: 18
On-balance sheet financing is any form of direct debt or equity funding of a firm. If the funding is equity, it appears on the firm's balance sheet as owners equity. If it is debt, it appears on the balance sheet as a liability. Any asset the firm acquires with the funding also appears on the balance sheet.
Off-balance sheet financing, by comparison, is any form of funding that avoids placing owners' equity, liabilities or assets on a firm's balance sheet. This is generally accomplished by placing those items on some other entity's balance sheet.
A standard approach is to form a special purpose vehicle (SPV) and place assets and liabilities on its balance sheet. Also called a special purpose entity (SPE), an SPV is a firm or legal entity established to perform some narrowly-defined or temporary purpose. The sponsoring firm accomplishes that purpose without having to carry any of the associated assets or liabilities on its own balance sheet. The purpose is achieved "off-balance sheet."
Investopedia explains Special Purpose Vehicle/Entity - SPV/SPE
Thanks to Enron, SPVs/SPEs are household words. These entities aren't all bad though. They were originally (and still are) used to isolate financial risk.
A corporation can use such a vehicle to finance a large project without putting the entire firm at risk. Problem is, due to accounting loopholes, these vehicles became a way for CFOs to hide debt. Essentially, it looks like the company doesn't have a liability when they really do. As we saw with the Enron bankruptcy, if things go wrong, the results can be devastating.
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A subsidiary or an affiliated business that conducts a specific activity that is crucial to the parents business. The SPV is designed to protect the parent corporation from the accounting, tax, or regulatory consequences of the SPVs activities. Often, SPVs are used for financial transactions, such as keeping debt or risky business ventures away from the parent company. Also called a special-purpose entity.
xxxjarry South Africa Local time: 08:57 Specializes in field Native speaker of: English PRO pts in category: 353
Explanation: The term "schulden" should read "leningen" . Loans will automatically create debts. The wording in the source text is a bit awkward.
The matter makes sense. Getting loans is like raising money, only with debts, of course.
Albert Stufkens Local time: 08:57 Specializes in field Native speaker of: Dutch, English PRO pts in category: 15
The translation workplace 
