Processes and systems employing multiple sources of funds

• US 20060247975A1
• Filed: 06/30/2006
• Published: 11/02/2006
• Est. Priority Date: 12/30/2003
• Status: Abandoned Application

• Current Assignee: The Privatebank (-10746) (CIBC Bank USA)
• Original Assignee: The Privatebank (-10746) (CIBC Bank USA)
• Inventors: Shapiro, Craig, Krafve, Kevin
• Application Number:
  US11/480,031
• Publication Number:
  US 20060247975A1
• Time in Patent Office: Days
• US Class Current: 705/14.100
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

Processes and systems employing multiple sources of funds to fund expenses incurred during a project. Venders retained to perform services or supply goods during the project submit invoices for approval. Invoices are approved and verifications are obtained that verify that funds from a primary source of funds, such as a secured loan, are available to cover the invoices. Invoices are paid with funds from a secondary source of funds, such as an unsecured loan. The funds withdrawn from the secondary source are repaid with funds from the primary source. Use of the secondary source of funds enables for prompt and efficient payment of vendor invoices. The secondary source may provide other incentives for use in the project. During implementation, an eCommerce system facilitates prompt payments and provides status and alert information to the various parties involved, automatic procurement of lien releases, vendor on-line bidding capability and other functionality.

Claims

1. A process of utilizing multiple sources of funds to pay expenses incurred during a project, comprising the steps of:

obtaining an invoice for payment, the invoice submitted by a vendor for rendering services for the project;

obtaining verification that funds from a primary loan are available for the invoice;

paying the invoice with funds from a secondary loan; and

repaying the secondary loan with funds from the primary loan.

2. The process of claim 1, further comprising the steps of securing the primary loan;

and securing the secondary loan after the primary loan is secured.

3. The process of claim 1, further comprising the steps of securing the primary loan by a borrower;

and verifying by an entity distinct from the borrower that funds from the primary loan are available for the invoice.

4. The process of claim 1, wherein the step of paying the invoice with funds from the secondary loan is carried out after obtaining verification that funds from the primary loan are available for the invoice.

5. The process of claim 1, wherein the primary loan is secured by property relating to the project.

6. The process of claim 1, further comprising the step of securing the secondary loan with a term restricting usage of the secondary loan to pay only invoices relating to the project funded by the primary loan.

7. The process of claim 1, further comprising the step of securing the secondary loan with terms permitting usage of the secondary loan to pay both pre-approved and non-approved invoices, a pre-approved invoice corresponding to an invoice in which verification that funds from the primary loan are available for the respective invoice is obtained;

and a non-approved invoice corresponding to an invoice in which no verification is obtained.

8. The process of claim 7, wherein the secondary loan includes a term corresponding to no pre-set spending limit for paying pre-approved invoices, and the secondary loan includes a term corresponding to a pre-set spending limit for paying non-approved invoices.

9. The process of claim 7, wherein the secondary loan includes a term corresponding to a first pre-set spending limit for paying pre-approved invoices, and the secondary loan includes a term corresponding to a second pre-set spending limit for paying non-approved invoices, the first and second pre-set spending limits being different.

10. The process of claim 9, wherein the first pre-set spending limit is substantially greater than the second pre-set spending limit.

11. The process of claim 7, wherein the secondary loan includes a term corresponding to a first payment window during which funds borrowed from the secondary loan to pay pre-approved invoices may be paid without incurring interest;

and the secondary loan includes a term corresponding to a second payment window during which funds borrowed from the secondary loan to pay non-approved invoices may be paid without incurring interest, the first and second payment windows being different.

12. The process of claim 11, wherein the first payment window is substantially shorter than the second payment window.

13. The process of claim 1, wherein the step of obtaining verification includes transferring funds from the primary loan to a separate account.

14. The process of claim 13, wherein the step of repaying the secondary loan is carried out by transferring funds from the separate account into an account corresponding to the secondary loan.

15. The process of claim 13, wherein transferring funds from the primary loan to the separate account occurs prior to the step of paying the invoice with funds from the secondary loan.

16. The process of claim 13, wherein transferring funds from the primary loan to the separate account occurs after the step of paying the invoice with funds from the secondary loan.

17. The process of claim 1, further comprising the step of obtaining authorization from a title company to pay the invoice;

and the step of paying the invoice is carried out only if authorization is obtained from the title company.

18. The process of claim 17, wherein the step of obtaining authorization from the title company occurs after the step of obtaining verification that funds from the primary loan are available for the invoice.

19. The process of claim 1, further comprising the step of transferring by a title company funds from the primary loan to a separate account;

and wherein the step of paying the invoice is carried out after the title company authorizes the invoice to be paid.

20. The process of claim 1, wherein the step of paying the invoice includes the steps of providing the vendor with a code;

and paying the invoice after receiving the code from the vendor.

21. The process of claim 20, wherein the step of providing the vendor with the code is carried out by a primary lender associated with the primary loan;

and the step of paying the invoice is carried out by a secondary lender associated with the secondary loan after receiving the code from the vendor.

22. The process of claim 20, wherein the step of providing the vendor with the code is carried out by a title company;

and the step of paying the invoice is carried out by a secondary lender associated with the secondary loan after receiving the code from the vendor.

23. The process of claim 1, further comprising the step of repaying the primary loan.

24. A process of utilizing multiple sources of funds to pay expenses incurred during a project, comprising the steps of:

obtaining an invoice for payment, the invoice submitted by a vendor for rendering services for the project;

obtaining verification that funds from a primary fund source are available for the invoice;

paying the invoice with funds from a secondary fund source; and

repaying the secondary fund source with funds from the primary fund source.

25. The process of claim 24, wherein the primary fund source is a grant of funds;

and the secondary fund source is a loan secured from a lending institution.

26. The process of claim 24, wherein the primary fund source is for the benefit of a funds recipient;

the process further comprising the step of verifying by an entity distinct from the funds recipient that funds from the primary fund source are available for the invoice.

27. The process of claim 24, wherein the step of paying the invoice with funds from the secondary fund source is carried out after obtaining verification that funds from the primary fund source are available for the invoice.

28. The process of claim 24, further comprising the step of securing the secondary fund source with a term restricting usage of the secondary fund source to pay only invoices relating to the project funded by the primary fund source.

29. The process of claim 24, further comprising the step of securing the secondary fund source with terms permitting usage of the secondary fund source to pay both pre-approved and non-approved invoices, a pre-approved invoice corresponding to an invoice in which verification that funds from the primary loan are available for the respective invoice is obtained;

and a non-approved invoice corresponding to an invoice in which no verification is obtained.

30. The process of claim 29, wherein the secondary fund source includes a term corresponding to no pre-set spending limit for paying pre-approved invoices, and the secondary fund source includes a term corresponding to a pre-set spending limit for paying non-approved invoices.

31. The process of claim 29, wherein the secondary fund source includes a term corresponding to a first pre-set spending limit for paying pre-approved invoices, and the secondary fund source includes a term corresponding to a second pre-set spending limit for paying non-approved invoices, the first and second pre-set spending limits being different.

32. The process of claim 31, wherein the first pre-set spending limit is substantially greater than the second pre-set spending limit.

33. The process of claim 29, wherein the secondary fund source includes a term corresponding to a first payment window during which funds borrowed from the secondary fund source to pay pre-approved invoices may be paid without incurring interest;

and the secondary fund source includes a term corresponding to a second payment window during which funds borrowed from the secondary fund source to pay non-approved invoices may be paid without incurring interest, the first and second payment windows being different.

34. The process of claim 33, wherein the first payment window is substantially shorter than the second payment window.

35. The process of claim 24, wherein the step of obtaining verification includes transferring funds from the primary fund source to a separate account.

36. The process of claim 35, wherein the step of repaying the secondary fund source is carried out by transferring funds from the separate account into an account corresponding to the secondary fund source.

37. The process of claim 35, wherein transferring funds from the primary fund source to the separate account occurs prior to the step of paying the invoice with funds from the secondary fund source.

38. The process of claim 35, wherein transferring funds from the primary fund source to the separate account occurs after the step of paying the invoice with funds from the secondary fund source.

39. The process of claim 24, further comprising the step of obtaining authorization from a fund administrator to pay the invoice;

and the step of paying the invoice is carried out only if authorization is obtained from the fund administrator.

40. The process of claim 39, wherein the step of obtaining authorization from the fund administrator occurs after the step of obtaining verification that funds from the primary fund source are available for the invoice.

41. The process of claim 24, further comprising the step of transferring by a fund administrator funds from the primary fund source to a separate account;

and wherein the step of paying the invoice is carried out after the fund administrator authorizes the invoice to be paid.

42. The process of claim 24, wherein the step of paying the invoice includes the steps of providing the vendor with a code;

and paying the invoice after receiving the code from the vendor.

43. The process of claim 42, wherein the step of providing the vendor with the code is carried out by a primary lender associated with the primary fund source;

and the step of paying the invoice is carried out by a secondary lender associated with the secondary fund source after receiving the code from the vendor.

44. The process of claim 42, wherein the step of providing the vendor with the code is carried out by a fund administrator;

and the step of paying the invoice is carried out by a secondary lender associated with the secondary fund source after receiving the code from the vendor.

45. A process of utilizing multiple sources of funds to pay expenses incurred during a project, comprising the steps of:

electronically approving an invoice submitted by a vendor for rendering services for the project;

paying the invoice with funds from a secondary fund source; and

repaying the secondary fund source with funds from the primary fund source.

46. The process of claim 45, further comprising the step of electronically submitting the invoice by the vendor.

47. The process of claim 45, further comprising the step of obtaining verification that funds from the primary fund source are available for the invoice.

48. The process of claim 45, further comprising the step of electronically generating a lien waiver for the vendor.

49. The process of claim 48, wherein the step of electronically generating the lien waiver is carried out automatically by an electronic system after the step of paying the invoice with funds from the secondary fund source is carried out.

50. The process of claim 48, wherein the step of electronically generating the lien waiver is carried out automatically by an electronic system prior to carrying out the step of paying the invoice with funds from the secondary fund source.

51. The process of claim 48, further comprising the step of pre-authorizing a lien waiver by a vendor;

and wherein the step of electronically generating the lien waiver is carried out automatically by utilizing the pre-authorized lien waiver.

52. The process of claim 51, wherein the step of pre-authorizing the lien waiver by the vendor is carried out prior to approving the invoice.

53. The process of claim 48, wherein the step of electronically generating the lien waiver is carried out by utilizing electronic data previously supplied in an electronic work request for the vendor.

54. The process of claim 45, further comprising the step of accessing by a recipient of funds from the primary and second fund sources work request status information about the project via an electronic system, the work request status information representing statuses of work requests for a plurality of vendors involved or sought to be involved in the project.

55. The process of claim 54, wherein the work request status information identifies a first number of vendors associated with respective work requests having a first status, and a second number of vendors associated with respective work requests having a second status, the first and second statuses being different.

56. The process of claim 55, wherein the first status is a status selected from the group consisting of new work request, requested work request, done work request and completed work request, and the second status is a status selected from the group consisting of new work request, requested work request, done work request and completed work request, the first status and second status being different.

57. The process of claim 54, wherein the work request status information accessible by the funds recipient includes information representing, for each of a plurality of projects of the funds recipient, statuses of work requests of vendors involved or sought to be involved in the respective project.

58. The process of claim 45, further comprising the step of accessing by a funds recipient via an electronic system information about each of a plurality of projects in which the funds recipient is involved.

59. The process of claim 58, wherein the information includes, for each of the plurality of projects, an identity of the respective primary fund source and a respective balance of funds available from the respective primary fund source.

60. The process of claim 45, further comprising the step of accessing by a vendor via an electronic system work request status information identifying statuses of a plurality of work requests associated with the vendor for the project.

61. The process of claim 45, further comprising the step of accessing by a vendor via an electronic system work request status information identifying, for each of a plurality of projects, statuses of work requests associated with the vendor for the respective project.

62. The process of claim 45, further comprising the step of accessing by the primary fund source via an electronic system lien information identifying, for each of a plurality of projects in which the primary fund source is supplying funds, statuses of each of a plurality of liens of vendors involved in the respective project.

63. The process of claim 45, further comprising enabling via an electronic system online bidding on a work request relating to the project by a plurality of vendors.

64. The process of claim 63, wherein the step of enabling online bidding is carried out by allowing a select plurality of vendors to bid on the work request, the select plurality of vendors corresponding only to vendors having a relationship with the secondary fund source.

65. The process of claim 63, wherein the step of enabling online bidding includes providing via the electronic system, by a plurality of bidding vendors, bids including documents comprising at least one of blueprints, drawings and specifications.