Online electronic trading system including lines of credit

• US 20060059080A1
• Filed: 09/15/2005
• Published: 03/16/2006
• Est. Priority Date: 09/16/2004
• Status: Abandoned Application

• Current Assignee: Tradecard Incorporated (Infor Incorporated)
• Original Assignee: Tradecard Incorporated (Infor Incorporated)
• Inventors: Benko, Heidi, Rohe, Jeff
• Application Number:
  US11/228,168
• Publication Number:
  US 20060059080A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An electronic trade service device includes processing devices providing computational functions providing negotiation and resolution of commercial agreements between buyers and sellers. The service includes defining contract terms, including price and payment terms and securing electronic connections by the buyer and seller to an electronic trade system. The buyer is associated with one or more credit providers which may pledge financial support based on defined terms. When the agreement is finalized at least a portion of the line of credit relating to the price term is pledged to securing payment by the buyer to the seller in exchange for producing the contractual items. The buyer utilizes a line of credit provided by one or more credit providers so that the commercial agreement between the buyer and seller. The trade service also allows the buyer to choose from an array of credit and financing options for conducting business transactions.

Claims

1. An electronic trade servicing method providing for the negotiation and resolution of a commercial agreement between a buyer and a seller, the agreement having contract terms, the method comprising:

securing a first electronic connection of the seller with an electronic trade system;

securing a second electronic connection of the buyer with the electronic trade system;

electronically defining the contract terms between the buyer and seller including defining a price term and a payment term within the trade system;

associating a credit provider with the buyer providing the buyer a line of credit; and

finalizing the agreement in the trade system including pledging at least a portion of the line of credit relating to the price term to secure payment by the buyer to the seller in exchange for producing contractual items.

2. The electronic trade servicing method of claim 1 further comprising:

supplying order level credit protection to the seller to insure against a change in credit position for the buyer.

3. The electronic trade servicing method of claim 2 further comprising:

offering the seller the option to decline the order level credit protection.

4. The electronic trade servicing method of claim 1 further comprising:

associating a plurality of credit providers with the buyer extending lines of credit to the buyer; and

generating a credit profile for the buyer based on the lines of credit from the plurality of credit providers.

5. The electronic trade servicing method of claim 4 wherein the step of pledging the at least a portion of the line of credit includes pledging varying amount of credit from different credit providers.

6. The electronic trade service method of claim 4 wherein the step of pledging the at least a portion of the line of credit includes pledging amount of credit proportional to the credit providers share of the buyer'"'"'s credit profile.

7. The electronic trade service method of claim 1 further comprising:

providing a notification to the credit provider once the portion of the line of credit has been pledged in the agreement.

8. The electronic trade service method of claim 7 wherein the notification is transmitted using an electronic mail communication.

9. The electronic trade service method of claim 1 further comprising:

generating a credit profile for the seller based on the pledged portion of the line of credit; and

making the credit status of the buyer available for inspection by a plurality of credit providers.

10. The electronic trade service method of claim 9 wherein the credit status is usable by one or more credit providers prior to extending a line of credit.

11. The electronic trade service method of claim 9 wherein the credit status is usable by the seller prior to entering into the agreement.

12. The electronic trade service method of claim 1 further comprising:

transferring a discounted payment to the seller from the buyer prior to an agreed upon payment date, wherein the discounted payment satisfies the payment obligations under the agreement and the discount payment represents an adjustment in the price term reflective of a time period between payment of the discounted payment and the payment date.

13. The electronic trade service method of claim 1 further comprising:

defining repayment terms between the seller and the credit provider for any outstanding balances due associated with the line of credit, the repayment terms include installment payments dates and an interest rate; and

facilitating installments payments between the seller and the credit provider.

14. The electronic trade service method of claim 1 wherein the line of credit is pledged to the seller for payment at a time relating to a particular step in at least one of:

development and delivery, of the contractual goods such that a seller verifies completion of a defined task at the particular step and at least one of;

the credit provider and buyer authorizes payment to the seller.

15. The electronic trade service method of claim 1 further comprising:

generating a contract between the seller and a supplier based on the contractual terms of the agreement;

defining supplier contract terms including a supplier price term and a supplier payment date;

finalizing the supplier contract without using a line of credit; and

facilitating payment of a discount supplier price term at a date prior to the supplier payment date, wherein the discounted supplier payment satisfies payment obligations under the supplier agreement and the discount payment represents an adjustment in the price term reflective of a time period between payment of the discounted payment and the supplier payment date.

30. The online electronic trading system of claim 1 further comprising:

the contract definition device operative to define the contract terms between the buyer and seller including defining a price term and a payment term;

the trading device operative to generate a contract between the seller and a supplier based on the contractual terms of the agreement;

the contract definition device operative to define supplier contract terms including a supplier price term and a supplier payment date;

the trading device operative to finalizing the supplier contract without using a line of credit; and

a payment processing device operative to facilitate payment of a discount supplier price term at a date prior to the supplier payment date, wherein the discounted supplier payment satisfies payment obligations under the supplier agreement and the discount payment represents an adjustment in the price term reflective of a time period between payment of the discounted payment and the supplier payment date.

16. An online electronic trading system providing for the electronic negotiation and resolution of a commercial agreement between a buyer and a seller, the agreement having contract terms, the trading system including:

a trading device operative to store commercial agreements and facilitate transactions relating to the execution of steps by the buyer and seller to satisfy conditions of the agreements;

a first input device coupled to the trading device receiving a first connection request from the seller and electronically connecting the seller to the trading device;

a second input device coupled to the trading device receiving a second connection request from the buyer and electronically connecting the buyer to the trading device;

a contract definition device associated with the trading device defining the contract terms between the buyer and seller including defining a price term and a payment term within the trade system;

a credit providing device associated with the trading system associating a credit provider with the buyer providing the buyer a line of credit; and

the trading device operative to finalize the agreement including pledging at least a portion of the line of credit relating to the price term to secure payment by the buyer to the seller in exchange for producing contractual items.

17. The online electronic trading system of claim 16 further comprising:

the credit providing device operative to grant order level credit protection to the seller to insure against a change in credit position of the buyer.

18. The online electronic trading system of claim 17 wherein the credit protection device provides an offer to the seller to decline the order level credit protection.

19. The online electronic trading system of claim 16 further comprising:

the credit providing device operative to associate a plurality of credit providers to provide lines of credit to the buyer; and

a credit profile generator operative to generate a credit profile for the buyer based on the lines of credit from the plurality of credit providers.

20. The online electronic trading system of claim 19 wherein the pledged at least a portion of the line of credit is pledged in varying amounts from the credit of the credit providers.

21. The online electronic trading system of claim 19 wherein the pledged portion of the line of credit is pledged proportional to a credit provider'"'"'s share of the buyer'"'"'s credit profile.

22. The online electronic trading system of claim 16 further comprising:

a notification device operative to provide a notification to the credit provider once the portion of the line of credit has been pledged in the agreement.

23. The online electronic trading system of claim 22 wherein the notification is transmitted using an electronic mail communication.

24. The online electronic trading system of claim 16 further comprising:

a credit profile generator operative to generate a credit profile for the buyer based on the pledged portion of the line of credit, wherein the credit profile is viewable by the least one credit provider.

25. The online electronic trading system of claim 24 wherein the credit profile is viewable prior to extending the line of credit through the credit providing device.

26. The online electronic trading system of claim 24 wherein the credit profile is viewable by the seller prior to the trading device finalizing the agreement between the buyer and seller.

27. The online electronic trading system of claim 16 further comprising:

a payment processing device operative to transfer a discounted payment to the seller from the buyer prior to an agreed upon payment date, wherein the discounted payment satisfies the payment obligations under the agreement and the discount payment represents an adjustment in the price term reflective of a time period between payment of the discounted payment and the payment date.

28. The online electronic trading system of claim 16 wherein the trading device is operative to define repayment terms between the seller and the credit provider for any outstanding balances due associated with the line of credit, the repayment terms include installment payments dates and an interest rate, the system further comprising:

a payment processing device operative to facilitate installments payments between the seller and the credit provider.

29. The online electronic trading system of claim 16 wherein the line of credit is pledged to the seller for payment at a time relating to a particular step in at least one of:

development and delivery, of the contractual goods such that a seller verifies completion of a defined task at the particular step, the system further comprising;

a payment processing device operative to authorize the transfer of funds for a payment to the seller from at least one of;

the credit provider and buyer.

31. An electronic trade servicing device comprising:

a process device facilitating the negotiation and resolution of a commercial agreement between a buyer and a seller, the agreement having contract terms, the processing device, in response to executable instructions, operative to;

secure a first electronic connection of the seller with;

secure a second electronic connection of the buyer;

electronically define the contract terms between the buyer and seller including defining a price term and a payment term;

associate a credit provider with the buyer providing the buyer a line of credit; and

finalize the agreement including pledging at least a portion of the line of credit relating to the price term to secure payment by the buyer to the seller in exchange for producing contractual items.

32. The electronic trade servicing device of claim 31, the processing device further operative to:

supply order level credit protection to the seller to insure against a change in credit position for the buyer.

33. The electronic trade servicing device of claim 32, the processing device further operative to:

offer the seller the option to decline the order level credit protection.

34. The electronic trade servicing device of claim 31, the processing device further operative to:

associate a plurality of credit providers with the buyer extending lines of credit to the buyer; and

generate a credit profile for the buyer based on the lines of credit from the plurality of credit providers.

35. The electronic trade servicing device of claim 34 wherein the pledging the at least a portion of the line of credit includes pledging varying amount of credit from different credit providers.

36. The electronic trade service device of claim 34 wherein the pledging the at least a portion of the line of credit includes pledging amount of credit proportional to the credit providers share of the buyer'"'"'s credit profile.

37. The electronic trade service device of claim 31, the processing device further operative to:

provide a notification to the credit provider once the portion of the line of credit has been pledged in the agreement.

38. The electronic trade service device of claim 37 wherein the notification is transmitted using an electronic mail communication.

39. The electronic trade service device of claim 31, the processing device is further operative to:

generate a credit profile for the seller based on the pledged portion of the line of credit; and

make the credit status of the buyer available for inspection by a plurality of credit providers.

40. The electronic trade service device of claim 39 wherein the credit status is usable by one or more credit providers prior to extending a line of credit.

41. The electronic trade service device of claim 39 wherein the credit status is usable by the seller prior to entering into the agreement.

42. The electronic trade service device of claim 31, the processing device is further operative to:

transfer a discounted payment to the seller from the buyer prior to an agreed upon payment date, wherein the discounted payment satisfies the payment obligations under the agreement and the discount payment represents an adjustment in the price term reflective of a time period between payment of the discounted payment and the payment date.

43. The electronic trade service device of claim 31, the processing device is further operative to:

define repayment terms between the seller and the credit provider for any outstanding balances due associated with the line of credit, the repayment terms include installment payments dates and an interest rate; and

facilitate installments payments between the seller and the credit provider.

44. The electronic trade service device of claim 31 wherein the line of credit is pledged to the seller for payment at a time relating to a particular step in at least one of:

development and delivery, of the contractual goods such that a seller verifies completion of a defined task at the particular step and at least one of;

the credit provider and buyer authorizes payment to the seller.

45. The electronic trade service device of claim 31 further comprising:

generate a contract between the seller and a supplier based on the contractual terms of the agreement;

define supplier contract terms including a supplier price term and a supplier payment date;

finalize the supplier contract without using a line of credit; and

facilitate payment of a discount supplier price term at a date prior to the supplier payment date, wherein the discounted supplier payment satisfies payment obligations under the supplier agreement and the discount payment represents an adjustment in the price term reflective of a time period between payment of the discounted payment and the supplier payment date.