System and method for supply chain financing

• US 20060095374A1
• Filed: 06/08/2005
• Published: 05/04/2006
• Est. Priority Date: 11/01/2004
• Status: Abandoned Application

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase & Co
• Inventors: Lo, Pik Kwan, Antinano Rodriquez de Torres, Mariano
• Application Number:
  US11/147,204
• Publication Number:
  US 20060095374A1
• Time in Patent Office: Days
• US Class Current: 705/42
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• 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

A system and method for providing supply chain financing is provided. The system comprises an invoice system for processing at least one invoice received from a buyer, the invoice system comprising: an invoice reception module for receiving the at least one invoice from the buyer, and an invoice validation module for validating the at least one invoice; a discount module for preparing at least one discount proposal to present to a seller, the discount proposal comprising a discount payment amount in exchange for earlier or immediate payment; and a negotiation module for negotiating the terms of the discount proposal and for receiving counter-discount proposals from the seller.

Claims

1. A system for providing supply chain financing, comprising:

an invoice system for processing at least one invoice received from a buyer or a seller, the invoice system comprising;

an invoice reception module for receiving the at least one invoice from the buyer or the seller, and

an invoice validation module for validating the at least one invoice;

a discount module for preparing at least two discount proposal options to present to the seller, the discount proposal comprising a discount payment amount in exchange for earlier or immediate payment; and

a negotiation module for negotiating the terms of the discount proposal, for making modifications to the terms of the discount proposal, and for preparing and receiving counter-discount proposals from the seller.

2. The system of claim 1 wherein the discount module for presents to the seller at least one option regarding the at least one proposal.

3. The system of claim 1 wherein the invoice document comprises data or information extracted from at least one invoice.

4. The system of claim 1 wherein the at least one discount proposal comprises different schemes for arranging early or immediate payment.

5. The system of claim 1 further comprising a payment module for arrangement of payment to at least one seller and/or from at least one buyer.

6. The system of claim 5 wherein the payment module pays the seller a discount on the agreed date if the seller accepts the discount proposal, and on the date of maturity if the seller rejects all the discount proposals.

7. The system of claim 5 wherein the payment module receives and/or takes payment from a buyer'"'"'s account on the date of maturity, or on agreed-upon date.

8. The system of claim 7 wherein the payment module receives from the buyer and/or the seller interest for the transaction, or an additional fee or charge.

9. The system of claim 1 wherein the negotiating module enables negotiation between the seller and the financial intermediary.

10. A method for providing supply chain financing, comprising:

receiving at least one invoice document from a buyer, the at least one invoice document corresponding to at least one transaction with at least one seller;

validating the at least one invoice document;

determining at least one discount proposal to present to at least one seller based on the at least one invoice document, the at least one discount proposal comprising a discount payment amount in exchange for early or immediate payment; and

presenting the at least one discount proposal to at least one seller.

11. The method of claim 10 further comprising the step of receiving an acceptance of the at least one discount proposal from the seller.

12. The method of claim 10 further comprising the step of receiving a modified acceptance of the at least one discount proposal from the seller.

13. The method of claim 10 further comprising the step of receiving a counter-discount proposal from the seller.

14. The method of claim 10 further comprising the step of receiving a rejection of the discount proposal from the seller.

15. The method of claim 10 wherein the validation step comprises determining the eligibility of the at least one invoice document.

16. The method of claim 10 further comprising the step of submitting early or immediate payment to the seller.

17. The method of claim 10 further comprising the step of submitting payment to the seller at maturity.

18. The method of claim 10 further comprising the step of receiving payment and/or fees from the buyer.

19. The method of claim 10 wherein the at least one invoice document comprises data or information relating to at least one invoice.

20. The method of claim 10 wherein the at least one invoice document and the at least one discount proposal are transmitted over a communications network.

21. A computer-usable medium for assessing risk, comprising:

code for receiving at least one invoice document from a buyer, the at least one invoice document corresponding to at least one transaction with at least one seller;

code for validating the at least one invoice document;

code for determining at least one discount proposal to present to at least one seller based on the at least one invoice document, the at least one discount proposal comprising a discount payment amount in exchange for early or immediate payment;

code for presenting the at least one discount proposal to at least one seller; and

code for negotiating the terms of the at least one discount proposal with the at least one seller.

22. The computer-useable medium of claim 21 further comprising code for receiving an acceptance of the at least one discount proposal from the seller.

23. The computer-useable medium of claim 21 further comprising code for receiving a modified acceptance of the at least one discount proposal from the seller.

24. The computer-useable medium of claim 21 further comprising code for receiving a counter-discount proposal from the seller.

25. The computer-useable medium of claim 21 further comprising code for receiving a rejection of the discount proposal from the seller.

26. A system for providing supply chain financing to a buyer and a discount proposal to a seller, comprising:

an invoice reception module for receiving at least one invoice document from a buyer or a seller, the invoice reception module being associated with a discount engine that is in communication with a buyer station and a seller station over a communications network, the invoice document comprising data and information corresponding to an invoice associated with a particular trade transaction(s);

an invoice validation module for validating and determining the eligibility of the at least one invoice document for supply chain financing, the invoice validation module also determining whether the at least one invoice document may be used to determine an appropriate discount proposal to present to at least one seller;

a conversion/translation module for verifying or converting the at least one invoice document to a format compatible with or preferred by the discount module;

a discount module for determining at least one discount proposal associated with the at least one invoice document, the at least one discount proposal comprising a proposal to make payment immediately or some time other than a maturity date associated with the at least one invoice document in exchange for a discount on a price associated with the at least one invoice;

a pricing module for determining appropriate pricing and/or rates to use in determining the at least one discount proposal;

a supplier negotiation module for presenting the at least one seller with the at least one discount proposal with at least one option, and for negotiating the at least one discount proposal with the at least one seller, the supplier negotiation module also serving to receive at least one counter-discount proposal from the at least one seller;

an interest rate module for receiving updates to the interest rate and/or discounts used to provide supply chain financing and/or determine and present at least one discount proposal;

at least one third party interface module for interfacing with third party providers of information or data used to provide supply chain financing and/or at least one discount proposal to at least one seller;

a payment determination module for making payments to sellers and for receiving payments from buyers;

a credit memo module for renegotiating the terms of the at least one invoice document and/or the at least one discount proposal following confirmation/approval of the at least one invoice document and/or the at least one discount proposal, and for generating a credit memo that applies any differential between an approved amount and a renegotiated amount as a credit to be submitted for processing with the next batch of invoices the at least one buyer or the at least one seller submits;

a notification module for notifying transaction participants of particular occurrences related to the at least one invoice documents and/or the at least one discount proposal;

a data interface module for delivering data to parties or other recipients related to the at least one invoice documents and/or the at least one discount proposal;

a distribution module for sharing or selling risk associated with the at least one invoice document and/or the at least one discount proposal;

an insurance module for insuring risk associated with the at least one invoice document and/or the at least one discount proposal;

a receivable forum module for buying and or selling account receivable and or accounts payable; and

a report module for preparing and presenting reports regarding at least one invoice document and/or at least one discount proposal.