Factoring system and method

• US 20070174191A1
• Filed: 09/05/2001
• Published: 07/26/2007
• Est. Priority Date: 09/05/2000
• Status: Active Grant

• Current Assignee: PrimeRevenue Incorporated
• Original Assignee: ERevenue, Inc.
• Inventors: Keaton, Samara, Keaton, G.
• Granted Patent: US 7,617,146 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A computerized system and method for facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices includes a computer program that receives instructions from a client to submit one or more invoices to a funding source for an advance of funds on accounts receivable on the chosen invoices and that provides access to invoice data to a funding source for determining whether the funding source will advance funds on the chosen invoices.

Claims

1. A computerized system for facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said system comprising:

a database storing data that describes a plurality of invoices that are owing to one or more clients by one or more customers, said data for each said invoice including the identity of said client to which said invoice is owed, the identity of said customer owing on said invoice and the amount of said invoice; and

a computer program that supports at least one rule that determines, based on said invoice data, the state of a predefined parameter that is a condition to factoring said invoices and that is configured to

receive instructions from said client to submit one or more of said invoices to a funding source for an advance of funds on accounts receivable on said chosen invoices,

provide said funding source access to said invoice data describing said one or more chosen invoices, and

determine, according to said at least one rule, said state of each said predefined parameter for each said chosen invoice, and

when said funding source accesses said invoice data of said one or more chosen invoices, display, in association with each said chosen invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter.

2. The system as in claim 1, wherein said client is remote from said computer program and said computer program is configured to receive said instructions from said client through a distributed computer system.

3. The system as in claim 2, wherein said funding source is remote from said computer program and said computer program is configured to provide said access to said funding source via a distributed computer system.

4. The system as in claim 1, wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been verified as a valid invoice.

5. The system as in claim 4, wherein said invoice data includes the identity of a carrier of goods transferred under said associated chosen invoice.

6. The system as in claim 5, wherein said computer program is configured to receive confirmation that said funding source is in possession of, and the shipping status of, said goods with said carrier and to set said state of said first parameter responsively thereto according to a first said rule.

7. The system as in claim 6, wherein said first rule relates predefined levels of said invoice amount to predefined shipping status levels so that said state of said first parameter for said associated chosen invoice depends on said invoice amount of said associated chosen invoice and upon whether said associated chosen invoice has attained said shipping status corresponding thereto.

8. The system as in claim 1, wherein a first said parameter describes whether an agreement exists, between said funding source and said customer owing on said chosen invoice associated with said first parameter, in which said customer agrees to pay to said funding source amounts owed by said customer on invoices on which funds have been advanced by said funding source.

9. The system as in claim 8, wherein said database stores agreement data for each said customer describing whether said customer has executed a said agreement with said funding source and, if not, whether said funding source has attempted to obtain said agreement with said customer, and wherein a first said rule associates one of a plurality of said predetermined symbols to said first parameter based upon said agreement data for said customer identified by said invoice data.

10. The system as in claim 9, wherein a first said parameter describes whether said client to which said chosen invoice associated with said first parameter is owed is credit-worthy.

11. The system as in claim 10, wherein said database stores client data for each said client describing said client'"'"'s business and financial history, wherein a first said rule includes a scoring algorithm defined by said funding source that produces a credit score based upon said client data, wherein said first rule relates said score to predetermined credit levels, and wherein said first rule associates one of a plurality of said predetermined symbols to said first parameter based upon comparison of said score to a credit level requested by said client.

12. The system as in claim 1, wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been paid.

13. The system as in claim 1, wherein said parameter may have any of a plurality of predetermined said states and wherein said predetermined symbol may be any of a plurality of predetermined colors corresponding to respective said states.

14. The system as in claim 1, wherein said parameter may have any of a plurality of predetermined said states and wherein said predetermined symbol may be any of a plurality of predetermined shapes corresponding to respective said states.

15. The system as in claim 1, wherein said parameter may have any of a plurality of predetermined said states and wherein said predetermined symbol may have any of a plurality of predetermined combinations of shapes and colors corresponding to respective said states.

16. The system as in claim 1, wherein said database stores

client data for each said client that describes said client'"'"'s business and financial history,

customer data for each said customer that describes said customer'"'"'s business history with one or more said clients, and

financing terms for each said client upon which said funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including a fee schedule, an advance rate and a charge back period.

17. The system as in claim 16, wherein said computer program is configured to, where said funding source chooses to advance funds to said particular client,

determine

an amount of advanced funds based on said advance rate,

a charge back time based on said charge back period and

factoring fees based on said fee schedule, and to

store said advance amount, said charge back time and said factoring fees in said database in association with said one or more chosen invoices.

18. A computerized system for facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, wherein the transaction occurs over through an Internet portal that

registers a client (“

transaction client”

) to conduct transactions on the portal,

receives a request from a customer (“

transaction customer”

) to conduct a transaction with the transaction client, and

following execution of the transaction between the transaction client and the transaction customer, stores data describing an invoice (“

transaction invoice”

) between the transaction customer and the transaction client arising from the transaction, the invoice data including the identity of the transaction client, the identity of the transaction customer and the amount owing on the transaction invoice, said system comprising a computer program that is in communication with said portal and that is configured to

receive an advance rate at which a funding source is willing to advance funds to said client on said client'"'"'s invoices;

receive a request from said transaction client that said transaction invoice be submitted to said funding source for an advance of funds on accounts receivable on said transaction invoice;

responsively to said request, download said invoice data from said portal;

provide said funding source access to said invoice data describing said transaction invoice,

upon receiving instructions from said funding source to advance funds to said transaction client, determine an amount of advanced funds based on said advance rate and said amount owing.

19. The system as in claim 18, including

a database storing financing terms for each client upon which a funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including said advance rate, a fee schedule, and a charge back period,

wherein said computer program is in communication with said database and supports at least one rule that determines, based on said invoice data, the state of a predefined parameter that is a condition to factoring invoices, and

wherein said computer program is configured to

determine, according to said at least one rule, said state of each said predefined parameter for said transaction invoice,

when said funding source accesses said invoice data of said transaction invoice, display, in association with each said transaction invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter,

where said funding source chooses to advance funds to said transaction client, determine

said amount of advanced funds,

a charge back time based on said charge back period, and

factoring fees based on said fee schedule, and

store said advance amount, said charge back time and said factoring fees in said database in association with said transaction invoice.

20. A computerized system for facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said system comprising:

a database storing data describing one or more invoices that are owing to a client by one or more customers and that said client has chosen to submit to a funding source for an advance of funds on accounts receivable on said chosen invoices, said data for each said invoice including the identity of said client to which said invoice is owed, the identity of said customer owing on said invoice and the amount of said invoice; and

a computer program configured to

receive, for each said invoice from among a plurality of predefined currencies, a first said currency in which said amount is defined and store said first currency in said database in association with said invoice,

provide access to said invoice data to one or more funding sources,

where one of said one or more funding sources chooses to advance funds on said one or more chosen invoices, receive identification from said funding source of a second said currency in which said funding source will advance said funds to said client, and

determine and store the amount of said advanced funds in said second currency, including, where said first currency and said second currency are different, converting from said first currency to said second currency.

21. The system as in claim 20, wherein said computer program is configured to store for each said invoice a third said currency in which said customer owing on said invoice is to pay said invoice.

22. A computerized method of facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said method comprising the steps of:

storing, in a database, data describing a plurality of invoices that are owing to one or more clients by one or more customers, said data for each said invoice including the identity of said client to which said invoice is owed, the identity of said customer owing on said invoice and the amount of said invoice;

establishing at least one rule that determines, based on said invoice data, the state of a predefined parameter that is a condition to factoring said invoices;

where said client has chosen one or more of said invoices to submit to a funding source for an advance of funds on accounts receivable on said chosen invoices,

providing said funding source access through a computer program to said invoice data describing said one or more chosen invoices, and

determining, according to said at least one rule, said state of each said predefined parameter for each said chosen invoice; and

wherein, when said funding source accesses said invoice data of said one or more chosen invoices, said program displays, in association with each said chosen invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter.

23. The method as in claim 22, wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been verified as a valid invoice.

24. The method as in claim 23, wherein said invoice data includes the identity of a carrier of goods transferred under said associated chosen invoice.

25. The method as in claim 24, wherein, in said determining step, said funding source confirms possession and shipping status of said goods with said carrier and wherein said state of said first parameter is set responsively thereto according to a first said rule.

26. The method as in claim 25, wherein said first rule relates predefined levels of said invoice amount to predefined shipping status levels so that said state of said first parameter for said associated chosen invoice depends on said invoice amount of said associated chosen invoice and upon whether said associated chosen invoice has attained said shipping status corresponding thereto.

27. The method as in claim 22, wherein a first said parameter describes whether an agreement exists, between said funding source and said customer owing on said chosen invoice associated with said first parameter, in which said customer agrees to pay to said funding source amounts owed by said customer on invoices on which funds have been advanced by said funding source.

28. The method as in claim 27, wherein said storing step includes storing in said database agreement data for each said customer describing whether said customer has executed a said agreement with said funding source and, if not, whether said funding source has attempted to obtain said agreement with said customer, and wherein a first said rule associates one of a plurality of said predetermined symbols to said first parameter based upon said agreement data for said customer identified by said invoice data.

29. The method as in claim 22, wherein a first said parameter describes whether said client to which said chosen invoice associated with said first parameter is owed is credit-worthy.

30. The method as in claim 29, wherein said storing step includes storing in said database client data for each said client describing said client'"'"'s business and financial history, wherein a first said rule includes a scoring algorithm defined by said funding source that produces a credit score based upon said client data, wherein said first rule relates said score to predetermined credit levels, and wherein said first rule associates one of a plurality of said predetermined symbols to said first parameter based upon comparison of said score to a credit level requested by said client.

31. The method as in claim 22, wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been paid.

32. The method as in claim 22, wherein said parameter may have any of a plurality of predetermined said states and wherein said predetermined symbol may be any of a plurality of predetermined colors corresponding to respective said states.

33. The method as in claim 22, wherein said parameter may have any of a plurality of predetermined said states and wherein said predetermined symbol may be any of a plurality of predetermined shapes corresponding to respective said states.

34. The method as in claim 22, wherein said parameter may have any of a plurality of predetermined said states and wherein said predetermined symbol may have any of a plurality of predetermined combinations of shapes and colors corresponding to respective said states.

35. The method as in claim 22, wherein said storing step includes

storing client data for each said client that describes said client'"'"'s business and financial history,

storing customer data for each said customer that describes said customer'"'"'s business history with one or more said clients, and

storing financing terms for each said client upon which said funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including a fee schedule, an advance rate and a charge back period.

36. The method as in claim 35, wherein, following said display step, said funding source chooses whether to advance funds to a particular said client on said one or more chosen invoices responsively to said state of each said parameter defined by said at least one rule for each said one or more chosen invoices.

37. The method as in claim 36, wherein, where said funding source chooses to advance funds to said particular client,

determining

an amount of advanced funds based on said advance rate,

a charge back time based on said charge back period and

factoring fees based on said fee schedule and

storing said advance amount, said charge back time and said factoring fees in said database in association with said one or more chosen invoices.

38. The method as in claim 36, wherein said funding source, prior to said choosing step and where said funding source has not previously factored invoices for said particular client, reviews said client data and said customer data and determines whether to accept said client for consideration of its invoices for factoring.

39. A computerized method of facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said method comprising the steps of:

registering a client to conduct transactions on an Internet portal;

receiving at said portal a request from a customer to conduct a transaction with said client;

following execution of said transaction, storing data at said portal identifying said transaction, wherein said transaction data includes the identity of said client, the identity of said customer owing on an invoice arising from said transaction and the amount of said invoice; and

where said client has requested that a funding source advance funds on accounts receivable on one or more said invoices chosen by said client, downloading said transaction data relating to said one or more chosen invoices from said portal to said funding source.

40. The method as in claim 39, wherein said transaction data includes a transaction identifier unique to each said transaction.

41. The method as in claim 40, wherein, at said downloading step, said portal downloads said transaction data responsively to receipt from said funding source of one or more said transaction identifiers corresponding to said one or more chosen invoices.

42. The method as in claim 40, wherein said portal assigns said transaction identifier.

43. The method as in claim 39, wherein said client requests that said funding source advance said funds at said downloading step through a third party factoring administrator over the Internet.

44. The method as in claim 43, wherein said portal maintains a link thereon to said funding source, wherein said client, upon choosing to request said funds at said downloading step, links to said funding source through said link and wherein said funding source redirects said client to said factoring administrator.

45. The method as in claim 43, wherein said portal maintains a link thereon to said factoring administrator and wherein said client, upon choosing to request said funds at said downloading step, links to said factoring administrator through said link.

46. The method as in claim 43, wherein said factoring administrator downloads, from said portal, data about said client stored at said portal at said registering step.

47. The method as in claim 46, wherein said factoring administrator presents an electronic application form to said client and wherein said factoring administrator at least partly completes said form with data downloaded by said factoring administrator from said portal.

48. The method as in claim 46, wherein, upon receiving a request from said client to advance funds on said chosen invoices, said factoring administrator, at downloading step, receives data from said client identifying said one or more chosen invoices and wherein said factoring administrator downloads from said portal said transaction data relating to said one or more chosen invoices and makes said transaction data available to said funding source.

49. The method as in claim 43, including

establishing at least one rule at said factoring administrator that determines, based on said transaction data relating to said chosen invoices, the state of a predefined parameter that is a condition to factoring said one or more chosen invoices;

determining, according to said at least one rule, said state of each said predefined parameter for each said of said one or more chosen invoices; and

wherein, when said funding source accesses said transaction data relating to said one or more chosen invoices, said factoring administrator displays, in association with each said chosen invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter.

50. The method as in claim 49, wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been verified as a valid invoice.

51. The method as in claim 49, wherein a first said parameter describes whether an agreement exists, between said funding source and said customer owing on said chosen invoice associated with said first parameter, in which said customer agrees to pay to said funding source amounts owed by said customer on invoices on which funds have been advanced by said funding source.

52. The method as in claim 49, wherein a first said parameter describes whether said client to which said chosen invoice associated with said first parameter is owed is credit-worthy.

53. The method as in claim 49, wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been paid.

54. The method as in claim 47, wherein

said electronic form requests data for said client that describes said client'"'"'s business and financial history, and

said factoring administrator stores financing terms for each said client upon which said funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including a fee schedule, an advance rate and a charge back period.

55. The method as in claim 54, wherein, following said display step, said funding source chooses whether to advance funds to said client on said one or more chosen invoices responsively to said state of each said parameter defined by said at least one rule for each said one or more chosen invoice.

56. The method as in claim 55, wherein, where said funding source chooses to advance funds to said client,

determining

an amount of advanced funds based on said advance rate,

a charge back time based on said charge back period and

factoring fees based on said fee schedule and

storing said advance amount, said charge back time and said factoring fees in said database in association with said one or more chosen invoices.

57. The method as in claim 55, wherein said funding source, prior to said choosing step and where said funding source has not previously factored invoices for said client, reviews said client data and said customer data and determines whether to accept said client for consideration of its invoices for factoring.

58. A computerized method of facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said method comprising the steps of:

where a client has chosen one or more invoices that are owing to said client by one or more customers to submit to a funding source for an advance of funds on accounts receivable on said chosen invoices, storing, in a database, data describing said one or more invoices, said data for each said invoice including the identity of said client to which said invoice is owed, the identity of said customer owing on said invoice, and the amount of said invoice;

selecting, for each said invoice from among a plurality of predefined currencies, a first said currency in which said amount is defined and storing said first currency in said database in association with said invoice;

providing access to said invoice data to one or more funding sources;

where one of said one or more funding sources chooses to advance funds on said one or more chosen invoices, receiving identification from said funding source of a second said currency in which said funding source will advance said funds to said client; and

determining and storing the amount of said advanced funds in said second currency, including, where said first currency and said second currency are different, converting from said first currency to said second currency.

59. The method as in claim 58, including storing for each said invoice a third currency in which said customer owing on said invoice is to pay said invoice.

60. The method as in claim 59, including for each said invoice, where said third currency is different from said second currency for said invoice, converting said third currency to said second currency upon payment by said customer on said invoice and storing said payment in said second currency.

61. The method as in claim 58, wherein said client requests that said funding source advance said funds through a third party factoring administrator over the Internet.

62. The method as in claim 61, wherein said data stored at said storing step includes

client data for each said client that describes said client'"'"'s business and financial history,

customer data for each said customer that describes said customer'"'"'s business history with one or more said clients, and

financing terms for each said client upon which said funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including a fee schedule, an advance rate and a charge back period.

63. The method as in claim 62, wherein said amount of said advanced funds is determined based on said advance rate, wherein a charge back time is determined based on said charge back period and factoring fees are determined based on said fee schedule, and wherein said advance amount, said charge back time and said factoring fees are stored in said database in association with each said one or more chosen invoices.

64. A computerized method of facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said method comprising the steps of:

storing, in a database,

invoice data describing a plurality of invoices that are owing to one or more clients by one or more customers, said data for each said invoice including the identity of said client to which said invoice is owed, the identity of said customer owing on said invoice and the amount of said invoice,

client data for each said client that describes said client'"'"'s business and financial history,

customer data for each said customer that describes said customer'"'"'s business history with one or more said clients, and

financing terms for each said client upon which a funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including a fee schedule, an advance rate and a charge back period;

establishing, at a third party factoring administrator computer program accessible over a distributed computer system, at least one rule that determines, based on said invoice data, the state of a predefined parameter that is a condition to factoring said invoices;

receiving, at said factoring administrator program through said distributed computer system, a request from said client that one or more of said invoices be submitted to said funding source for an advance of funds on accounts receivable on said chosen invoices;

selecting said one or more chosen invoices in said database and determining, according to said at least one rule, said state of each said predefined parameter for each said chosen invoice;

providing said funding source access, at said factoring administrator program through said distributed computer system, to said invoice data describing said one or more chosen invoices;

when said funding source accesses said invoice data of said one or more chosen invoices, displaying, in association with each said chosen invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter;

where said funding source chooses to advance funds to a particular said client, determining at said factoring administrator program

an amount of advanced funds based on said advance rate,

a charge back time based on said charge back period, and

factoring fees based on said fee schedule; and

storing said advance amount, said charge back time and said factoring fees in said database in association with said one or more chosen invoices.

65. The method as in claim 64, wherein said providing step includes providing said funding source access to said client data for said particular client and said customer data for said customers owing on said one or more chosen invoices.

66. A computerized method of facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said method comprising the steps of:

registering a client (“

transaction client”

) to conduct transactions on an Internet portal;

receiving at said portal a request from customer (“

transaction customer”

) to conduct a transaction with said transaction client;

following execution of said transaction between said transaction client and said transaction customer, storing data at said portal describing an invoice (“

transaction invoice”

) between said transaction customer and said transaction client arising from said transaction, said invoice data including the identity of said transaction client, the identity of said transaction customer and the amount owing on said transaction invoice;

establishing, at a third party factoring administrator computer program accessible over the Internet, at least one rule that determines, based on said invoice data, the state of a predefined parameter that is a condition to factoring invoices;

storing, in a database accessible by said factoring administrator program, financing terms for each client upon which a funding source is willing to advance funds to said client on said client'"'"'s invoices, said financing terms including a fee schedule, an advance rate and a charge back period;

receiving, at said factoring administrator program through the Internet, a request from said transaction client that said transaction invoice be submitted to said funding source for an advance of funds on accounts receivable on said transaction invoice;

downloading said invoice data to said factoring administrator program responsively to said request;

determining, according to said at least one rule, said state of each said predefined parameter for said transaction invoice;

providing said funding source access, at said factoring administrator program through the Internet, to said invoice data describing said transaction invoice;

when said funding source accesses said invoice data of said transaction invoice, displaying, in association with each said transaction invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter;

where said funding source chooses to advance funds to said transaction client, determining at said factoring administrator program

an amount of advanced funds based on said advance rate,

a charge back time based on said charge back period, and

factoring fees based on said fee schedule; and

storing said advance amount, said charge back time and said factoring fees in association with said transaction invoice.