Trade receivable processing method and apparatus

• US 7,366,698 B1
• Filed: 12/13/2006
• Issued: 04/29/2008
• Est. Priority Date: 08/11/2000
• Status: Expired due to Term

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Loy, John J.
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US11/610,176
• Time in Patent Office: 503 Days
• Field of Search: 705 14- 44
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• 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
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A processing method and apparatus is provided, such as a clearinghouse, for tracking receivable and payable information, matching, negotiating, trading, providing working capital financing, and settling payments for accounts payable and accounts receivable between trading partners and finance providers.

Claims

1. A method of utilizing a computer network based receivable clearinghouse for facilitating a transaction involving a receivable and corresponding invoice having payable and receivable information, the method comprising the steps of:

receiving data comprising the invoice with the payable and the receivable information from a first participant involved in the transaction;

generating electronic invoice information in response to the invoice received from the first participant;

transmitting the electronic invoice information on behalf of the first participant to a second participant, the electronic invoice including one or more payment terms wherein one term requires payment of the receivable be sent to the receivable clearinghouse;

offering the receivable for sale to multiple third parties over a receivable marketplace associated with the receivable clearinghouse, the receivable marketplace being accessed by a receivable trading apparatus;

matching a payment with the receivable in the receivable clearinghouse;

reconciling the payment and the receivable in the receivable clearinghouse; and

storing particulars of the transaction in a registry associated with the receivable clearinghouse.

2. The method of claim 1 wherein the payment is for an amount less than invoice corresponding to the receivable.

3. The method of claim 2 further comprising the steps of:

receiving a confirmation acceptance from the second participant in response to the confirmation offer from the first participant;

recording the confirmation acceptance from the first participant in the receivable clearinghouse;

modifying the one or more payment terms of the receivable in response to the confirmation acceptance; and

forwarding the confirmation acceptance to the first participant to modify terms of the receivable.

4. The method of claim 3 further comprising the steps of:

receiving a reconfirmation acceptance comprising a guarantee of an obligation from a third participant, the third participant being a receivable debtor sponsor; and

forwarding the reconfirmation acceptance to the first participant.

5. The method of claim 3 further comprising the step of:

transferring ownership and security interests of the receivable utilizing the receivable clearinghouse.

6. The method of claim 1 further comprising providing a process for modifying the one or more payment terms, the steps comprising:

receiving a confirmation offer from the second participant; and

forwarding the confirmation offer to the first participant.

7. The method of claim 6 further comprising the steps of:

receiving a confirmation acceptance from the first participant in response to the confirmation offer from the second participant;

recording the confirmation acceptance from the first participant in the receivable clearinghouse;

modifying the one or more payment terms of the receivable in response to the confirmation acceptance; and

forwarding the confirmation acceptance to the second participant to modify the receivable.

8. The method of claim 7 further comprising the step of:

receiving a reconfirmation offer from a third participant, the third participant being a receivable debtor sponsor; and

forwarding the reconfirmation offer to the first participant.

9. The method of claim 7 further comprising the step of:

transferring ownership of the receivable utilizing the receivable clearinghouse.

10. The method of claim 1 further comprising the steps of:

facilitating negotiations between the first and second participants; and

, coordinating fund settlements between the first and second participants.

11. The method of claim 1 further comprising the steps of:

providing several types of participants for participating in the receivable clearinghouse;

the types of participants include;

receivable owner, receivable debtor, receivable owner sponsor, receivable debtor sponsor, and financial provider, the receivable owner providing data on the receivable and being obligated to utilize the receivable clearinghouse to resolve the transaction, the receivable debtor providing data on the receivable and being obligated to utilize the receivable clearinghouse to resolve the transaction, the receivable owner sponsor being a representative of the receivable owner and being obligated to utilize the receivable clearinghouse to resolve the transaction on behalf of the receivable owner, the receivable debtor sponsor being a representative of the receivable debtor and being obligated to utilize the receivable clearinghouse to resolve the transaction on behalf of the receivable debtor, and, the financial provider capable of providing financing to any of the participants through utilizing the receivable clearinghouse.

12. The method of claim 1 wherein the first participant being a receivable owner and the second participant being a receivable debtor.

13. The method of claim 1 wherein the invoice information received from the first participant comprises:

an obligor;

an amount;

an invoice number; and

a due date.

14. A method of utilizing a computer network based receivable clearinghouse for facilitating delivery of invoice information, reflecting a receivable, between a first party and a second party, the first party being a full participant of the receivable clearinghouse, the method comprising the steps of:

receiving the invoice information from the full participant;

generating payable information in response to the invoice information received from the full participant;

transmitting the payable information to the second party as an electronic invoice including one or more payment terms wherein one term requires payment of the receivable represented by the electronic invoice be settled through the receivable clearinghouse;

offering the receivable for sale to multiple third parties over a receivable marketplace associated with the receivable clearinghouse, the receivable marketplace being accessed by a receivable trading apparatus;

matching a payment with the receivable in the receivable clearinghouse;

reconciling the payment and the receivable in the receivable clearinghouse; and

storing particulars of the transaction in a registry associated with the receivable clearinghouse.

15. The method of claim 14 further comprising the steps of:

generating a daily net settlement report wherein the full participant'"'"'s payables and receivables are processed, including cross currency exchange mechanisms;

adjusting the full participant'"'"'s account in response to the generated daily net settlement report; and

transmitting the daily net settlement report to the full participant.

16. The method of claim 14 further comprising the steps of:

extending an offer to the full participant for soliciting funding for the invoice to a financial participant under clearinghouse rules and obligations agreed to by all participants.

17. The method of claim 16 wherein the extending an offer to the full participant is a predetermined arrangement under clearinghouse rules and obligations agreed to by all participants.

18. The method of claim 16 wherein the extending an offer to the full participant is confidential.

19. A computer network based receivable clearinghouse for facilitating a transaction involving a participant and an invoice, the invoice including payable and receivable information, the computer network based receivable clearing house comprising:

a data repository for holding the invoice information submitted by the participant, the data repository being accessible to a financial institution of the participant under clearinghouse rules and obligations agreed to by all participants;

a fund settlement apparatus for settling discrepancies involved with the invoice, the fund settlement apparatus being operably connected to the data repository wherein daily cash settlements between the clearinghouse and the participant occur;

a reconciliation apparatus for reconciling payments and matching receivables at the clearinghouse;

a data management and reporting apparatus for compiling data received from the participant and for reporting data summarized to the participant, including financial participants, the data management and reporting apparatus being operably connected to the data repository; and

a receivable trading apparatus for interacting with a receivable marketplace wherein the receivable represented by the invoice information can be offered for sale to multiple third party participants of the receivable clearinghouse, the receivable trading apparatus being operably connected to the data repository.

20. The computer network based receivable clearinghouse of claim 19 wherein the receivable trading apparatus receives payments for the receivable represented by the invoice information that are less than the invoice.