Supply Chain Financing Systems and Methods

• US 20070156584A1
• Filed: 11/20/2006
• Published: 07/05/2007
• Est. Priority Date: 11/22/2005
• Status: Abandoned Application

• Current Assignee: PrimeRevenue Incorporated
• Original Assignee: PrimeRevenue Incorporated
• Inventors: Arne, Paul, Barnes, Robert, Duncan, Daniel
• Application Number:
  US11/561,837
• Publication Number:
  US 20070156584A1
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

In an electronic supply chain finance system, a method of enabling a supplier optionally to sell accounts receivable owed to the supplier, comprising receiving a payment obligation from a buyer, the payment obligation having a value and a maturity date, presenting the payment obligation to the supplier prior to the maturity date, providing the supplier with an opportunity to sell the payment obligation at a discounted value to a financial institution or other third party prior to the maturity date, and, thereafter, on the maturity date, receiving payment from the buyer for the value of the payment obligation regardless of whether the supplier sold the payment obligation prior to the maturity date. Disbursing or causing the disbursement of the value of the payment obligation to the financial institution or to the supplier based on whether or not the supplier accepted early payment from the financial institution.

Claims

1. In an electronic supply chain finance system having a buyer, at least one supplier who provides goods/services to the buyer outside of the system, and at least one financial institution, each of which accesses the system through a computer network interface, a method of enabling the supplier to sell to the financial institution accounts receivable owed to the supplier by the buyer, comprising the steps of:

a. receiving a payment obligation from the buyer, the payment obligation having a value and a maturity date and being associated with an underlying accounts receivable from the buyer to the supplier;

b. providing the payment obligation to the supplier;

c. receiving a sell offer from the supplier, the sell offer associated with the payment obligation but having a discounted value and a payment date earlier than the maturity date;

d. receiving an acceptance of the sell offer from the financial institution, wherein the acceptance transfers legal ownership of the payment obligation from the supplier to the financial institution;

e. disbursing the discounted value of the sell offer from the financial institution to the supplier on the payment date;

f. on the maturity date, receiving payment from the buyer in the amount of the value of the payment obligation; and

g. disbursing the amount received from the buyer to the financial institution as the owner of the payment obligation.

2. The method of claim 1 wherein terms and conditions associated with the sell offer are governed by a buyer program configured prior to the receipt of the payment obligation.

3. The method of claim 2 wherein the buyer program identifies the suppliers and financial institutions affiliated with the buyer.

4. The method of claim 3 wherein the buyer program identifies which of the financial institutions to receive the sell offer.

5. The method of claim 2 wherein the buyer program determines the discounted value of the sell offer.

6. The method of claim 2 wherein the buyer program determines whether the sell offer can be created by the supplier.

7. The method of claim 6 wherein the determination is based on whether the sell offer falls within an acceptable trade window of time.

8. The method of claim 7 wherein the buyer program identifies the time zone for the window of time.

9. The method of claim 6 wherein the determination is based on whether the sell offer exceeds an amount acceptable to the financial institution.

10. The method of claim 9 wherein the determination is based on aggregate sell offers already received from the supplier.

11. The method of claim 9 wherein the determination is based on aggregate sell offers already received by the financial institution from multiple suppliers.

12. The method of claim 2 wherein the buyer program identifies the currency for the sell offer.

13. The method of claim 2 wherein the buyer program identifies bank accounts of the buyer, the supplier, and the financial institution for management of find transfers therebetween.

14. The method of claim 2 wherein the buyer program determines whether the sell offer is automatically generated on behalf of the supplier in response to receipt of the payment obligation.

15. The method of claim 14 wherein the determination to automatically generate the sell offer is made by the supplier.

16. The method of claim 14 wherein the determination to automatically generate the sell offer is made by a system manager.

17. The method of claim 2 wherein the buyer program determines whether the sell offer is automatically accepted by the financial institution.

18. The method of claim 17 wherein the determination to automatically accept the sell offer is made by the financial institution.

19. The method of claim 2 wherein the buyer program defines the amount of fees retained by the financial institution and other financial partners after the sell offer is accepted by the financial institution.

20. The method of claim 2 wherein the buyer program determines how long the sell offer is valid.

21. The method of claim 1 further comprising the step of providing the sell offer from the supplier as a buy offer to the financial institution.

22. The method of claim of claim 21 wherein the step of providing the sell offer from the supplier as the buy offer to the financial institution comprises displaying the buy offer to the financial institution through the system.

23. The method of claim of claim 1 wherein the step of providing the payment obligation to the supplier comprises displaying the payment obligation to the supplier through the system.

24. The method of claim 1 wherein a portion of the value of the payment obligation is provided to at least one financial partner when the payment is received from the buyer.

25. The method of claim The method of claim 1 wherein a portion of the value of the payment obligation is provided to at least one financial partner when the discounted value of the sell offer is disbursed.

26. The method of claim 1 wherein the difference between the value of the payment obligation and the discounted value of the sell offer includes fees retained by the financial institution and at least one other financial partner.

27. The method of claim 26 wherein the at least one other financial partner includes a system manager, a system operator, a system administrator, a broker, a system service provider, a community manager, or the buyer.

28. The method of claim 1 wherein the payment obligation is batch loaded into the system from an accounts payable system of the buyer.

29. The method of claim 1 wherein the payment obligation represents an irrevocable agreement by the buyer to submit payment in the amount of the value, on the maturity date, to the system.

30. The method of claim 1 wherein the sell offer is generated automatically by the system based on a setup decision by the supplier.

31. The method of claim 1 wherein the sell offer is generated automatically by the system based on a setup decision by a system manager.

32. The method of claim 1 wherein the acceptance of the sell offer is generated automatically by the system based on a setup decision by the financial institution.

33. The method of claim 1 wherein the buyer, the supplier, and the financial institution each have respective bank accounts accessible by the system from which and to which payments by the system are made.

34. In an electronic payment system accessed by a buyer and supplier, the supplier providing goods/services to the buyer outside of the system, the system managed by a system administrator, the buyer and supplier each accessing the system through a computer network interface and each having a respective bank account of which the system administrator is authorized to transfer funds in and out, a method comprising the steps of:

a. receiving a payment obligation from the buyer, the payment obligation having a value and a maturity date and being associated with an underlying accounts receivable from the buyer to the supplier based upon goods/services provided by the supplier, wherein the payment obligation represents an irrevocable legal agreement by the buyer to have the amount of the value withdrawn from the bank account of the buyer, on the maturity date, by the system administrator;

b. presenting the payment obligation to the supplier prior to the maturity date;

c. providing the supplier with an opportunity to sell the payment obligation to a third party prior to the maturity date at a discounted value;

d. on the maturity date, withdrawing the amount of the value of the payment obligation from the bank account of the buyer.

35. The method of claim 34 wherein, if the supplier sells the payment obligation to the third party prior to the maturity date, disbursing the amount of the discounted value of the payment obligation to the bank account of the supplier prior to the maturity date and disbursing the amount of the value of the payment obligation to a bank account of the third party on the maturity date.

36. The method of claim 34 wherein, if the supplier sells the payment obligation to the third party prior to the maturity date, ownership of the payment obligation transfers from the supplier to the third party on the date of the sale.

37. The method of claim 34 wherein, if the supplier does not sell the payment obligation to the third party, disbursing the amount of the value of the payment obligation to the bank account of the supplier on the maturity date.

38. The method of claim 34 wherein the discounted value of the payment obligation is presented to the supplier as part of providing the supplier with the opportunity to sell the payment obligation prior to the maturity date.

39. The method of claim 34 further comprising the steps of receiving a sell offer from the supplier for the payment obligation prior to the maturity date and offering the payment obligation to the third party.

40. The method of claim 34 wherein the difference between the value and discounted value of the payment obligation includes fees retained by a financial partner.

41. In an electronic supply chain finance system having buyers, suppliers who provide goods/services to the buyers outside of the system, and financial institutions, all having access to the system through computer network interfaces, a method of enabling suppliers to sell their accounts receivable, comprising the steps of:

a. defining a community within the system, the community including at least one respective buyer and one or more suppliers and financial institutions associated with the respective buyer;

b. configuring a buyer program associated with the respective buyer, the buyer program associating a subset of the suppliers and of the financial institutions with the respective buyer; and

thereafter;

c. receiving a payment obligation from the respective buyer, the payment obligation having a value and a maturity date and being associated with an underlying accounts receivable from the buyer to a respective supplier of the subset of suppliers;

d. providing the payment obligation to the respective supplier;

e. receiving a sell offer from the respective supplier, the sell offer associated with the payment obligation but having a discounted value and a payment date earlier than the maturity date;

f. providing a buy offer associated with the sell offer to a respective financial institution of the subset of financial institutions;

g. receiving an acceptance of the buy offer from the respective financial institution, wherein the acceptance legally transfers title to the payment obligation from the respective supplier to the respective financial institution;

h. disbursing the discounted value of the sell offer from an account of the respective financial institution to the respective supplier on the payment date;

i. on the maturity date, receiving payment from an account of the respective buyer in the amount of the value of the payment obligation; and

j. disbursing the amount received from the respective buyer to the respective financial institution as the owner of the payment obligation;

wherein the sell offer, the buy offer, and associated disbursements within the community are governed by terms and conditions defined by the buyer program.

42. The method of claim 41 wherein the buyer program identifies the respective financial institution of the subset of financial institutions to receive the sell offer.

43. The method of claim 41 wherein the buyer program determines the discounted value of the sell offer.

44. The method of claim 41 wherein the buyer program determines whether the sell offer can be created by the respective supplier.

45. The method of claim 44 wherein the determination is based on whether the sell offer falls within an acceptable trade window of time.

46. The method of claim 45 wherein the buyer program identifies the time zone for the window of time.

47. The method of claim 44 wherein the determination is based on whether the sell offer exceeds an amount acceptable to the respective financial institution.

48. The method of claim 47 based on aggregate sell offers already received from the respective supplier.

49. The method of claim 47 based on aggregate sell offers already received by the respective financial institution from multiple suppliers.

50. The method of claim 41 wherein the buyer program identifies the currency for the sell offer.

51. The method of claim 41 wherein the buyer program identifies bank accounts of the respective buyer, the respective supplier, and the respective financial institution for management of fund transfers therebetween.

52. The method of claim 41 wherein the buyer program determines whether sell offers are automatically generated on behalf of the respective supplier in response to receipt of the payment obligation.

53. The method of claim 41 wherein the buyer program determines whether sell offers are automatically accepted on behalf of the respective financial institution.

54. The method of claim 41 wherein the buyer program defines the amount of fees retained by the respective financial institution and a system administrator after the sell offer is accepted by the respective financial institution.

55. The method of claim 41 wherein the buyer program determines how long the sell offer is valid.

56. The method of claim 41 wherein the step of providing the payment obligation to the respective supplier comprises displaying the payment obligation to the respective supplier through the system.

57. The method of claim 41 wherein a portion of the value of the payment obligation is provided to a financial partner when the payment is received from the respective buyer.

58. The method of claim 41 wherein a portion of the value of the payment obligation is provided to a financial partner when the discounted value of the sell offer is disbursed.

59. The method of claim 41 wherein the difference between the value of the payment obligation and the discounted value of the sell offer includes fees retained by the respective financial institution and a financial partner.

60. The method of claim 59 wherein the financial partner includes a system manager, a system operator, a system administrator, a broker, a system service provider, a community manager, or the buyer.

61. The method of claim 41 wherein the payment obligation is batch loaded into the system from an accounts payable system of the respective buyer.

62. The method of claim 41 wherein the payment obligation represents an irrevocable agreement by the respective buyer to submit payment in the amount of the value, on the maturity date, to the system.