Method for financing business expenses

• US 20040122755A1
• Filed: 12/19/2002
• Published: 06/24/2004
• Est. Priority Date: 12/19/2002
• Status: Abandoned Application

• Current Assignee: American Shared Hospital Services
• Original Assignee: American Shared Hospital Services
• Inventors: Tagawa, Craig, Bates, Ernest A.
• Application Number:
  US10/325,329
• Publication Number:
  US 20040122755A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method for financing a business expense comprising a method of tax-exempt financing that may be classified as an operating lease pursuant to Generally Accepted Accounting Principles in the United States of America at the time of the invention.

Claims

1. A method of financing a business expense comprising:

a tax-exempt entity borrowing a first sum of money from a lender wherein any interest paid pursuant to said loan is not taxed by the United States Federal Government;

said tax-exempt entity using said first sum of money to purchase one or more assets;

said tax-exempt entity then transferring possession and the right to use and enjoy said one or more assets to a third party for a predetermined period of time in exchange for payment by said third party of a second sum of money;

said predetermined period of time not to exceed 75% of the estimated economic life of said one or more assets;

said tax-exempt entity granting said third party the option to purchase title to said one or more assets in exchange for a final sum of money at the conclusion of said predetermined period of time; and

said final sum of money being the greater of (i) the fair market value of the asset at the end of said predetermined period of time and (ii) the amount of money sufficient when combined with said second sum of money to complete repayment of said first sum of money plus interest and any lender charges.

2. The method of financing a business expense of claim 1 wherein if said third party does not exercise said option to purchase title to said one or more assets, said tax-exempt entity having the option to compel a fourth party to purchase title to said one or more assets for the amount of money sufficient when combined with said second sum of money to repay said first sum of money plus lender charges;

and

if said tax-exempt entity does not exercise said option to compel said fourth party to purchase said title, said tax-exempt entity retains title and must pay the amount of money sufficient when combined with said second sum of money to repay said first sum of money plus lender charges to said lender.

3. The method of financing a business expense of claim 1 wherein said second sum of money is paid in multiple payments spread over time.

4. The method of financing a business expense of claim 2 wherein said second sum of money is paid in multiple payments spread over time.

9. The method of financing a business expense of claim 1 wherein said third party qualifies for tax-exempt financing.

10. The method of financing a business expense of claim 1 wherein said third party is a tax-exempt entity.

11. The method of financing a business expense of claim 1 wherein said third party is not a tax-exempt entity but is using said one or more assets for a project that qualifies for tax-exempt financing.

15. The method of financing a business expense of claim 2 wherein said method is arranged by said fourth party.

5. A method of financing equipment for an operating business comprising:

a tax exempt entity borrowing a first sum of money from a lender pursuant to the issuance of tax-exempt bonds wherein any interest paid pursuant to the bonds is not taxed by the United States Government;

said tax-exempt entity using said first sum of money to purchase one or more pieces of equipment;

said tax-exempt entity then leasing said one or more pieces of equipment to a third party for a predetermined period of time in exchange for periodic rental payments by said third party;

said predetermined period of time not to exceed 75% of the estimated economic life of said one ore more pieces of equipment;

said tax-exempt entity granting said third party the option to purchase title to said one or more pieces of equipment in exchange for a final sum of money at the conclusion of said predetermined period of time; and

said final sum of money being the greater of (i) the fair market value of said one or more pieces of equipment at the end of said predetermined period of time and (ii) the amount of money sufficient to repay said first sum of money plus lender charges thereby retiring the bonds.

6. The method of financing a business expense of claim 5 further comprising:

said tax-exempt entity having the option to compel a fourth party to purchase title to said one or more pieces of equipment for the amount of money sufficient to repay said first sum of money plus lender charges thereby retiring the bonds if said third party does not purchase said one or more pieces of equipment; and

if said tax-exempt entity does not exercise said option to compel said fourth party to purchase said title, said tax-exempt entity retains title and must pay the amount of money sufficient to repay said first sum of money plus lender charges thereby retiring the bonds to said lender.

7. The method of financing a business expense of claim 5 wherein said second sum of money is paid in multiple payments spread over time.

8. The method of financing a business expense of claim 6 wherein said second sum of money is paid in multiple payments spread over time.

12. The method of financing a business expense of claim 5 wherein said third party qualifies for tax-exempt financing.

13. The method of financing a business expense of claim 5 wherein said third party is a tax-exempt entity.

14. The method of financing a business expense of claim 5 wherein said third party is not a tax-exempt entity but is using said one or more assets for a project that qualifies for tax-exempt financing.

16. The method of financing a business expense of claim 6 wherein said method is arranged by said fourth party.

17. A method of financing a business expense comprising:

a first entity borrowing a first sum of money from a lender;

said first entity using at least some of said first sum of money for purchasing one or more assets;

said first entity leasing at least one of said one or more assets to a second entity;

any interest paid by said first entity to said lender not being taxed by a United States Federal Government; and

said lease having the characteristics of an operating lease as defined by Generally Accepted Accounting Practices in the United States of America.