guarantee of payment

USAGE SUMMARY

The phrase "guarantee of payment" is correct and usable in written English.
It can be used in financial or contractual contexts to indicate a promise or assurance that a payment will be made. Example: "The contractor provided a guarantee of payment to ensure that all suppliers would be compensated for their materials."

✓ Grammatically correct

News & Media

Academia

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

18 human-written examples

More work may be done with no guarantee of payment.

Harvard Business Review

If a PO or other guarantee of payment will be submitted from your organization, your manager must sign the registration form taking responsibility of payment.

Cornell University

Two other potential problems are the growing amount of work done on spec (that is, with no guarantee of payment) and the increased surveillance of electronically connected workers.

Harvard Business Review

State and health plan officials have assured providers they will be retroactively reimbursed for continuing services, but home care agencies fear that without prior authorization, there is no guarantee of payment.

The New York Times

I should add that the bondholders of MBIA care less about rating agency opinion given they have an irrevocable guarantee of payment if the underlying bonds fail to perform.

The New York Times

After bombarding the fortress of San Juan de Ulúa, situated on a reef outside the harbour, and occupying the city (April 16, 1838), the French won a guarantee of payment through the good offices of Great Britain and withdrew their fleet (March 9 , 1839.

Encyclopedia Britannica

Human-verified similar examples from authoritative sources

Similar Expressions

42 human-written examples

In exchange, the government has said it will offer guarantees of payment of principle and interest.

The New York Times

Some examples of such guarantees include guarantees of payment or collection on a note or other debt instrument (assuring returns on investments); issuing performance bonds or completion bonds; or cosigning leases or other obligations of third parties.

Cornell University

But power officials said late today that generators remained skeptical about the state's efforts to address the problem and were reluctant to keep selling power to California without guarantees of payment.

The New York Times

"Yes, it will be, for sure," said Ecclestone, adding he was waiting for guarantees of payment.

BBC

The company literature made clear the couple was ultimately responsible for their own bills, and that Medi-Share had limits and offered no guarantees of payment.

Huffington Post

Expert writing Tips

Best practice

Use "guarantee of payment" when you want to emphasize a binding commitment to ensure funds will be provided.

Common error

Don't assume that a "guarantee of payment" covers all potential costs. Clearly define what the guarantee covers (e.g., principal, interest, late fees) to avoid unexpected financial liabilities.

Linguistic Context

The phrase "guarantee of payment" functions as a noun phrase that denotes a commitment or assurance that a payment will be made. According to Ludwig AI, this phrase is usable in financial or contractual contexts.

Expression frequency: Uncommon

Frequent in

News & Media

44%

Academia

30%

Encyclopedias

15%

Less common in

Science

5%

Wiki

5%

Formal & Business

1%

Ludwig's WRAP-UP

The phrase "guarantee of payment" is a grammatically correct and usable term, mainly employed in financial and contractual contexts to signify a firm commitment that a payment will be made. Ludwig AI confirms this. While alternatives such as "payment assurance" or "assured payment" exist, "guarantee of payment" provides a distinct emphasis on the legally binding nature of the obligation. It appears most frequently in news and media, academic, and encyclopedia sources. When using this phrase, ensure clarity regarding the scope and conditions of the guarantee to prevent potential misunderstandings.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

assured payment

This alternative is more concise, replacing "guarantee of" with a single adjective.

payment assurance

This alternative reverses the order and uses "assurance" instead of "guarantee", maintaining a similar level of formality.

secured payment

This alternative highlights the act of securing the payment, implying it's protected.

irrevocable payment commitment

This alternative emphasizes the binding nature of the commitment.

underwritten payment

This alternative indicates that the payment is financially backed by a third party.

payment covenant

This alternative is more formal and often used in legal or contractual contexts.

financial undertaking

This option is a broader term, referring to an agreed financial obligation.

payment warranty

This term offers legalistic nuance, implying an assumption of responsibility to fulfill payment.

commitment to pay

This alternative focuses on the action of promising to pay.

financial collateral

This option presents a means of payment collection through pledged assets or securities, should the original payment fail.

FAQs

How is "guarantee of payment" typically used in contracts?

In contracts, "guarantee of payment" typically ensures that a party will receive payment, regardless of another party's financial difficulties. It provides a safety net, shifting the risk to the guarantor.

What are some situations where a "guarantee of payment" is essential?

A "guarantee of payment" is crucial in scenarios involving high financial risk, such as construction projects, international trade, or lending to businesses with limited credit history.

What legal obligations arise from providing a "guarantee of payment"?

Providing a "guarantee of payment" creates a legal obligation to cover the debt or payment if the original party defaults. This obligation is usually documented in a formal agreement.

What's the difference between "assurance of payment" and "guarantee of payment"?

While both phrases suggest a commitment to pay, "guarantee of payment" implies a stronger, more legally binding commitment than "assurance of payment". A guarantee provides a higher degree of certainty.