Distributed system for custom financing

• US 10,607,286 B1
• Filed: 08/07/2017
• Issued: 03/31/2020
• Est. Priority Date: 05/26/2014
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Poursartip, Ariana, Scott, John Bryan, Teh, Kevin
• Primary Examiner(s): Ade, Garcia
• Application Number:
  US15/670,305
• Time in Patent Office: 967 Days
• Field of Search: 705 16
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A payment and financing system can determine whether a merchant is eligible for financing for a particular amount. The particular amount can be determined by evaluating previous financial transactions that were conducted by the merchant and other merchants through the payment and financing system. Once a determination is made that the merchant is eligible for the cash advance, the payment system can send a customized offer for financing in the particular amount to the merchant via a merchant computing device. The merchant can accept the offer for the cash advance by sending an acceptance to the payment and financing system, for example, through a financing interface on the merchant computing device. Upon accepting the offer, the merchant is provided the financed amount, for example, in the form of an electronic deposit in a financial account of the merchant.

Claims

1. A computer-implemented method comprising:

receiving, by one or more server computing devices of a payment and financing system, from a plurality of merchant computing devices associated with a plurality of merchants, transaction information of transactions performed between the plurality of merchants and a plurality of customers, each merchant computing device having a respective instance of a merchant application installed thereon for configuring the merchant computing device as a point-of-sale (POS) device, the merchant application further configuring each POS device to communicate the transaction information over a network to the one or more server computing devices, wherein a first one of the POS devices is associated with a financial account of a first merchant of the plurality of merchants such that receiving proceeds from a plurality of transactions processed via the first POS device causes the payment and financing system to deposit the proceeds in the financial account of the first merchant;

determining, based on the transaction information received from the first POS device, one or more factors indicative of a business of the first merchant;

comparing, by the one or more server computing devices, the transaction information received from the plurality of merchant computing devices with the one or more factors determined for the first merchant to generate, based on the comparing, a custom financing offer for the first merchant of the plurality of merchants, the custom financing offer including repayment terms and a repayment time for a financed amount;

sending, by the one or more server computing devices, to the first POS device, at least a portion of the custom financing offer, to cause, at least in part, presentation of at least the portion of the custom financing on a user interface of the first POS device;

in response to an indication of acceptance of the custom financing offer, providing, by the one or more server computing devices, the financed amount to an account associated with the first merchant; and

withholding from deposit, by the one or more server computing devices, during the repayment time and corresponding with the repayment terms, a portion of funds from the plurality of transactions processed via the first POS device for repayment of the financed amount.

2. The computer-implemented method of claim 1, further comprising:

prior to receiving the acceptance, receiving, by the one or more processors, via the user interface presented on the first POS device, a request for a different amount for the financed amount; and

providing, by the one or more server computing devices, a revised offer as the custom financing offer for the financed amount to the first POS device, the custom financing offer including repayment terms and the repayment time for the different amount for the financed amount.

3. The computer-implemented method of claim 1, further comprising:

receiving, by the one or more server computing devices, from the first POS device, via the user interface of the first POS device, instructions for dynamically restructuring the rate of repayment for the financed amount so that the repayment completes within the repayment time;

determining, by the one or more server computing devices, based on the plurality of transactions processed via the first POS device, a set of adjusted terms for repayment of the financed amount, the set of adjusted terms including at least an adjusted rate of repayment of the financed amount; and

based on the adjusted rate, changing, by the one or more server computing devices, an amount withheld from subsequent transactions processed by the payment and financing system between the first merchant and the customers using the first POS device.

4. The computer-implemented method of claim 1, further comprising:

determining, by the one or more server computing devices, based on the plurality of transactions processed via the first POS device, that the first merchant is not on schedule for repaying the financed amount within the repayment time;

determining, by the one or more server computing devices, an adjusted rate of repayment of the financed amount, so that the first merchant is on schedule for repaying the financed amount within the repayment time; and

based on the adjusted rate, changing, by the one or more server computing devices, an amount withheld from subsequent transactions processed by the payment and financing system between the first merchant and the customers using the first POS device.

5. The computer-implemented method of claim 1, further comprising:

determining, by the one or more server computing devices, based on the plurality of transactions processed via the first POS device, that the first merchant is ahead of schedule for repaying the financed amount within the repayment time; and

sending, by the one or more server computing devices, a notification to the first POS device indicating that the first merchant is ahead of schedule for repayment of the financed amount to cause a first instance of the merchant application on the first POS device to present, in the user interface, a message indicating that the first merchant is ahead of schedule for repayment of the financed amount.

6. The computer-implemented method of claim 1, further comprising:

determining, by the one or more server computing devices, that the first merchant has repaid the financed amount before the repayment time;

comparing, by the one or more server computing devices, the transaction information received from the plurality of merchant computing devices with one or more factors associated with the first merchant determined based at least partially on additional transaction information received from the first POS device to generate another custom financing offer for the first merchant; and

providing, by the one or more server computing devices, to the first POS device, another custom financing offer for another financed amount for presentation on the user interface of the POS device.

7. The computer-implemented method of claim 1, wherein sending, by the one or more server computing devices, to the first POS device, at least the portion of the custom financing offer causes a first instance of the merchant application on the first POS device to present, on the user interface of the first POS device, one or more virtual controls to enable the merchant to at least one of accept the custom financing offer or submit a change to the custom financing offer.

8. The computer-implemented method of claim 1, wherein a first instance of the merchant application on the first POS device further configures the first POS device to present a financing adjustment user interface including at least one virtual control for the merchant to request a change to the repayment terms after acceptance of the custom financing offer.

9. A system comprising:

one or more processors; and

one or more computer-readable media storing instructions that, when executed by the one or more processors of a payment and financing system, cause the one or more processors to perform operations comprising;

receiving, by the one or more processors, from a plurality of merchant computing devices associated with a plurality of merchants, transaction information of transactions performed between the plurality of merchants and a plurality of customers, each merchant computing device having a respective instance of a merchant application installed thereon for configuring the merchant computing device as a point-of-sale (POS) device, the merchant application further configuring each POS device to communicate the transaction information over a network to the one or more processors, wherein a first one of the POS devices is associated with a financial account of a first merchant of the plurality of merchants such that receiving proceeds from a plurality of transactions processed via the first POS device causes the payment and financing system to deposit the proceeds in the financial account of the first merchant;

determining, based on the transaction information received from the first POS device, one or more factors indicative of a business of the first merchant;

comparing, by the one or more processors, the transaction information received from the plurality of merchant computing devices with the one or more factors determined for the first merchant to generate, based on the comparing, a custom financing offer for the first merchant of the plurality of merchants, the custom financing offer including repayment terms and a repayment time for a financed amount;

sending, by the one or more processors, to the first POS device associated with the first merchant, at least a portion of the custom financing offer, to cause, at least in part, presentation of at least the portion of the custom financing on a user interface of the first POS device;

in response to an indication of acceptance of the custom financing offer, providing, by the one or more processors, the financed amount to an account associated with the first merchant; and

withholding from deposit, by the one or more processors, during the repayment time and corresponding with the repayment terms, a portion of funds from the plurality of transactions processed via the first POS device for repayment of the financed amount.

10. The system as recited in claim 9, the operations further comprising:

receiving, by the one or more processors, from the first POS device, via the user interface of the first POS device, instructions for dynamically restructuring the rate of repayment for the financed amount so that the repayment completes within the repayment time;

determining, by the one or more processors, based on the plurality of transactions processed via the first POS device, a set of adjusted terms for repayment of the financed amount, the set of adjusted terms including at least an adjusted rate of repayment of the financed amount; and

based on the adjusted rate, changing, by the one or more processors, an amount withheld from subsequent transactions processed by the payment and financing system between the first merchant and the customers using the first POS device.

11. The system as recited in claim 9, the operations further comprising:

determining, by the one or more processors, based on the plurality of transactions processed via the first POS device, that the first merchant is not on schedule for repaying the financed amount within the repayment time;

determining, by the one or more processors, an adjusted rate of repayment of the financed amount, so that the first merchant is on schedule for repaying the financed amount within the repayment time; and

based on the adjusted rate, changing, by the one or more processors, an amount withheld from subsequent transactions processed by the payment and financing system between the first merchant and the customers using the first POS device.

12. The system as recited in claim 9, the operations further comprising:

determining, by the one or more processors, based on the plurality of transactions processed via the first POS device, that the first merchant is ahead of schedule for repaying the financed amount within the repayment time; and

sending, by the one or more processors, a notification to the first POS device indicating that the first merchant is ahead of schedule for repayment of the financed amount to cause a first instance of the merchant application on the first POS device to present, in the user interface, a message indicating that the first merchant is ahead of schedule for repayment of the financed amount.

13. The system as recited in claim 9, the operations further comprising:

determining, by the one or more processors, that the first merchant has repaid the financed amount before the repayment time;

comparing, by the one or more processors, the transaction information received from the plurality of merchant computing devices with one or more factors associated with the first merchant determined based at least partially on additional transaction information received from the first POS device to generate another custom financing offer for the first merchant; and

providing, by the one or more processors, to the first POS device, another custom financing offer for another financed amount for presentation on the user interface of the POS device.

14. The system as recited in claim 9, the operations further comprising:

prior to receiving the acceptance, receiving, by the one or more processors, via the user interface presented on the first POS device, a request for a different amount for the financed amount; and

providing, by the one or more server computing devices, a revised offer as the custom financing offer for the financed amount to the first POS device, the custom financing offer including repayment terms and the repayment time for the different amount for the financed amount.

15. A non-transitory computer-readable medium storing instructions which, when executed by one or more processors of a payment and financing system, configure the one or more processors to perform operations comprising:

receiving, by the one or more processors, from a plurality of merchant computing devices associated with a plurality of merchants, transaction information of transactions performed between the plurality of merchants and a plurality of customers, each merchant computing device having a respective instance of a merchant application installed thereon for configuring the merchant computing device as a point-of-sale (POS) device, the merchant application further configuring each POS device to communicate the transaction information over a network to the one or more processors, wherein a first one of the POS devices is associated with a financial account of a first merchant of the plurality of merchants such that receiving proceeds from a plurality of transactions processed via the first POS device causes the payment and financing system to deposit the proceeds in the financial account of the first merchant;

determining, based on the transaction information received from the first POS device, one or more factors indicative of a business of the first merchant;

comparing, by the one or more processors, the transaction information received from the plurality of merchant computing devices with the one or more factors determined for the first merchant to generate, based on the comparing, a custom financing offer for the first merchant of the plurality of merchants, the custom financing offer including repayment terms and a repayment time for a financed amount;

sending, by the one or more processors, to the first POS device associated with the first merchant, at least a portion of the custom financing offer, to cause, at least in part, presentation of at least the portion of the custom financing on a user interface of the first POS device;

in response to an indication of acceptance of the custom financing offer, providing, by the one or more processors, the financed amount to account associated with the first merchant; and

withholding from deposit, by the one or more processors, during the repayment time and corresponding with the repayment terms, a portion of funds from the plurality of transactions processed via the first POS device for repayment of the financed amount.

16. The non-transitory computer-readable medium as recited in claim 15, the operations further comprising:

receiving, by the one or more processors, from the first POS device, via the user interface of the first POS device, instructions for dynamically restructuring the rate of repayment for the financed amount so that the repayment completes within the repayment time;

determining, by the one or more processors, based on the plurality of transactions processed via the first POS device, a set of adjusted terms for repayment of the financed amount, the set of adjusted terms including at least an adjusted rate of repayment of the financed amount; and

based on the adjusted rate, changing, by the one or more processors, an amount withheld from subsequent transactions processed by the payment and financing system between the first merchant and the customers using the first POS device.

17. The non-transitory computer-readable medium as recited in claim 15, the operations further comprising:

determining, by the one or more processors, based on the plurality of transactions processed via the first POS device, that the first merchant is not on schedule for repaying the financed amount within the repayment time;

determining, by the one or more processors, an adjusted rate of repayment of the financed amount, so that the first merchant is on schedule for repaying the financed amount within the repayment time; and

based on the adjusted rate, changing, by the one or more processors, an amount withheld from subsequent transactions processed by the payment and financing system between the first merchant and the customers using the first POS device.

18. The non-transitory computer-readable medium as recited in claim 15, the operations further comprising:

determining, by the one or more processors, based on the plurality of transactions processed via the first POS device, that the first merchant is ahead of schedule for repaying the financed amount within the repayment time; and

sending, by the one or more processors, a notification to the first POS device indicating that the first merchant is ahead of schedule for repayment of the financed amount to cause a first instance of the merchant application on the first POS device to present, in the user interface, a message indicating that the first merchant is ahead of schedule for repayment of the financed amount.

19. The non-transitory computer-readable medium as recited in claim 15, the operations further comprising:

determining, by the one or more processors, that the first merchant has repaid the financed amount before the repayment time;

comparing, by the one or more processors, the transaction information received from the plurality of merchant computing devices with one or more factors associated with the first merchant determined based at least partially on additional transaction information received from the first POS device to generate another custom financing offer for the first merchant; and

providing, by the one or more processors, to the first POS device, another custom financing offer for another financed amount for presentation on the user interface of the POS device.

20. The non-transitory computer-readable medium as recited in claim 15, the operations further comprising:

prior to receiving the acceptance, receiving, by the one or more processors, via the user interface presented on the first POS device, a request for a different amount for the financed amount; and

providing, by the one or more server computing devices, a revised offer as the custom financing offer for the financed amount to the first POS device, the custom financing offer including repayment terms and the repayment time for the different amount for the financed amount.