APPARATUS TO PROVIDE LIQUID FUNDS IN THE ONLINE AUCTION AND MARKETPLACE ENVIRONMENT

• US 20100223154A1
• Filed: 05/06/2009
• Published: 09/02/2010
• Est. Priority Date: 03/02/2009
• Status: Active Grant

• Current Assignee: American Express Kabbage Incorporated (American Express Company)
• Original Assignee: Kabbage Inc. (American Express Company)
• Inventors: Frohwein, Robert James, Petralia, Kathryn Tison
• Granted Patent: US 7,983,951 B2
• Time in Patent Office: Days
• US Class Current: 705/27
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

A method, apparatus, and computer readable storage to implement a lending system for use with electronic commerce web sites such as auction sites. A seller may receive a cash loan for items placed for sale but not yet purchased by a buyer. The seller can be required to pay back the loan after a predetermined amount of time or as soon as the item for sale is sold and payment is received from the buyer. The lender would charge interest or commission for the loan. In this manner, sellers can receive cash for items listed on auction sites before those items are actually sold, generating additional cash flow for the seller.

Claims

1. A system to transfer a loan amount to a seller who is listing an item on an e-commerce web site, the system comprising:

a lending server to communicate with an e-commerce server hosting an e-commerce web site, the e-commerce web site serving web pages to visitors, allowing sellers to list items for sale and allowing buyers to bid on the items for sale;

a lending database in communication with the lending server to store credit profiles of users and respective credit information; and

a financial processing application in communication with the lending server to initiate transfer of funds using a computer communications network,

wherein the lending server retrieves a credit profile for the seller from the lending database and determines, based on at least both the credit profile and on characteristics of the seller'"'"'s sales history on the e-commerce site or a similar e-commerce site, whether to issue a loan to the seller, and if so, then notifies the seller the loan is available and the terms of such loan, and if the seller accepts the loan then using the financial processor to transfer a loan amount to the seller.

2. The system as recited in claim 1, wherein the determination of whether to issue the loan also takes into consideration characteristics of an item for sale by the seller the loan would be associated with.

3. The system as recited in claim 1, wherein the loan is secured by the item.

4. The system as recited in claim 1, wherein when the item is sold on the e-commerce web site, the payment for the item is paid directly to an account associated with the lending server.

5. The system as recited in claim 1, wherein if the lending server determines to issue the loan, the lending server triggers an alert that appears on the seller'"'"'s computer indicating the available ability of the loan and prompting the seller for acceptance or refusal.

6. The system as recited in claim 5, wherein the alert is a pop-up window.

7. The system as recited in claim 1, wherein the determination of whether to issue the loan is based in part on the seller'"'"'s transaction history on the e-commerce web site.

8. The system as recited in claim 1, wherein the determination of whether to issue the loan is based in part on the seller'"'"'s feedback rating on the e-commerce web site.

9. The system as recited in claim 1, wherein a lending pool of money is maintained to fund loans which comprise the loan, wherein the lending pool is funded in part by investing sellers using the e-commerce web site who transfer at least some of their funds to the lending pool.

10. A system to transfer a loan amount to a seller who is listing an item on an e-commerce web site, the system comprising:

a lending server, maintained by a lender, to communicate with an e-commerce server hosting an e-commerce web site, the e-commerce web site serving web pages to visitors, allowing buyers to list items for sale and allowing sellers to bid on the items for sale; and

a financial processing application in communication with the lending server to transfer a loan to a borrowing seller against an item for sale on the e-commerce web site by the borrowing seller using a computer communications network;

wherein an investing seller uses the e-commerce web site to transfer investment money to a lending account owned by the lender in return for repayment of the investment money with interest, wherein the lending account comprises funds used to fund the loan to the borrowing seller which is processed by the financial processing application.

11. The system as recited in claim 10, further comprising:

a lending database in communication with the lending server to store credit profiles of users and respective credit information,

wherein before the transfer of the loan to the borrowing seller, a loan decision is approved using the lending database and characteristics of the item for sale by the borrowing seller.