Method and system for financing publicly traded companies
First Claim
1. A method of providing a publicly traded company funding in an amount, A, the method comprising:
- identifying fixed assets of the company, the fixed assets having a value, V, to be pledged as collateral to secure funding, identifying a number, N, of shares of listed stock having a price per share, P, to be pledged as additional collateral to secure the funding;
determining an advance rate percentage, R, of the pledged fixed assets;
determining a ratio, M, of total stock collateral value (N×
P) to excess loan amount (A−
(R×
V)); and
approving the funding, A, where;
1 Assignment
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Accused Products
Abstract
A method and system for financing publicly traded companies. According to one embodiment, a client provides collateral for receiving financing. Such collateral includes, on one hand, pledged assets, for example, accounts receivable, equipment, inventory real estate and the like, and on the other hand, stock. The stock is transferred to an entity, such as a limited liability company (LLC). The stock may be liquidated throughout the term of the financing or upon default by the client. If the client defaults, the cash and stock are provided to the lending party; where the LLC is majority owned by the client and the client does not default, at the end of the term, the client has a funded financing company in the form of the LLC.
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Citations
35 Claims
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1. A method of providing a publicly traded company funding in an amount, A, the method comprising:
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identifying fixed assets of the company, the fixed assets having a value, V, to be pledged as collateral to secure funding, identifying a number, N, of shares of listed stock having a price per share, P, to be pledged as additional collateral to secure the funding;
determining an advance rate percentage, R, of the pledged fixed assets;
determining a ratio, M, of total stock collateral value (N×
P) to excess loan amount (A−
(R×
V)); and
approving the funding, A, where;
- View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A method of providing a publicly traded company funding in an amount, A, the method comprising:
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receiving at least one application for a loan from the company, the application including information identifying at least (i) the name of the company, (ii) fixed assets of the company, the fixed assets having a value, V, to be pledged as collateral to secure funding, and (iii) a number, N, of shares of listed stock having a price per share, P, to be pledged as additional collateral to secure the funding;
determining the advance rate percentage, R, of the pledged accounts;
determining a ratio, M, of total stock collateral value (N×
P) to excess loan amount (A−
(R×
V)); and
approving the funding, A, where;
establishing a separate entity, and registering the shares of stock pledged by the company in the name of the separate entity. - View Dependent Claims (12, 13, 14, 15, 16, 17)
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18. A method of a first party funding a second party, the second party being a publicly traded company, the method comprising:
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purchasing accounts receivable of the company at a discount rate;
establishing an entity legally distinct from the company and the first party;
transferring shares of a publicly traded security into the separate entity, the shares being collateral for purchasing the accounts receivable such that the discount rate is greater than an industry comparable discount rate for purchasing the accounts receivable without the shares as collateral. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25)
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26. A system for providing funding in an amount, A, to a publicly traded company based on fixed assets and shares of a listed stock via a communications network connecting a lender and a plurality of publicly owned companies seeking to secure financing, the system comprising:
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means for receiving an indication of company fixed assets having a value, V, to be pledged as collateral to secure funding and a number, N, of the shares of the listed stock having a price per share, P, to be pledged as additional collateral to secure the funding;
means for determining on advance rate percentage, R, of the pledged fixed assets;
means for determining a ratio, M, of total stock collateral value (N×
P) to excess loan amount (A−
(R×
V)); and
means for transmitting to the company an approval of the funding, where;
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27. A method for a company to receive funding, the method comprising:
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pledging fixed assets as collateral for the funding, the pledged fixed assets having a standard advance rate associated therewith;
transferring publicly traded stock into a separate entity, the stock separate from the fixed assets; and
receiving funding at an effective advance rate greater than the standard advance rate. - View Dependent Claims (28, 29, 30)
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31. A method of receiving funding the method comprising:
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selling accounts receivable, the accounts receivable having a standard discount rate associated therewith;
transferring publicly traded stock into a separate entity for liquidation;
receiving funding at an effective discount rate greater than the standard discount rate. - View Dependent Claims (32, 33, 34, 35)
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Specification