Systems and associated methods for providing projected incentive based loans

• US 7,729,980 B2
• Filed: 07/01/2004
• Issued: 06/01/2010
• Est. Priority Date: 07/01/2004
• Status: Active Grant

• Current Assignee: United Parcel Service Of America Incorporated (United Parcel Service Incorporated)
• Original Assignee: United Parcel Service Of America Incorporated (United Parcel Service Incorporated)
• Inventors: Mittenzwei, Phil, Kapeskas, Rimas
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): Ebersman; Bruce I
• Application Number:
  US10/884,581
• Publication Number:
  US 20060004650A1
• Time in Patent Office: 2,161 Days
• Field of Search: None
• US Class Current: 705/38
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• 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

Abstract

An incentive based loan method and related system provides a loan to a purchaser in association with the purchase of goods or services. An amount of purchases to be made by a purchaser, such as a small business, is projected over a period of time. The purchases can be goods or services, such as package shipping services. Based on the amount of the projected purchases, an incentive rate is agreed upon by the seller of the goods or services and the purchaser. In lieu of receiving the discounted rate on the goods or services during the period of time, the present value of the total incentives to be earned over the projection period is loaned to the purchaser. The purchaser thereafter pays list price for the goods or services, and the incentives earned are applied to the required loan payment.

Claims

1. A method utilizing an advance-incentive-loan computer system to provide an advance-incentive loan to a purchaser in association with projected future purchase of goods or services from a seller, the method comprising:

projecting by the computer system a value of agreed-upon incentives to be applied to actual future purchases over a period of time, wherein the computer system is configured to project the value of said agreed-upon incentives by;

estimating a volume of the projected future purchases to be made by the purchaser over said period of time based on past purchase volumes;

calculating a projected sales revenue for the seller at a first price for the projected future purchases over said period of time;

calculating a projected sales revenue for the seller at a second price for the projected future purchases over said period of time, the second price being less than the first price and being determined based on the estimated volume of the projected future purchases; and

calculating the difference between the projected sales revenue at the first price over said period of time and the projected sales revenue at the second price over said period of time; and

providing by said computer system the advance-incentive loan to the purchaser, wherein an amount of the advance-incentive loan is based on a present value of the projected value of the agreed-upon incentives calculated using an interest rate and said period of time, and wherein payments made by the purchaser in association with actual future purchases include an amount of interest on the advance-incentive loan.

2. The method of claim 1 wherein the services purchased are shipping services.

3. The method of claim 1 further comprising:

applying with the computer system incentives earned on actual sales against a required loan payment.

4. The method of claim 3 further comprising:

billing with the computer system the purchaser for any amount of the loan payment not covered by the incentives earned when the amount of the incentives earned is less than the required loan payment.

5. The method of claim 3 further comprising:

refunding with the computer system an amount of the incentives earned to the purchaser that is in excess of the required loan payment.

6. The method of claim 3 further comprising:

reducing with the computer system the purchaser'"'"'s bill by an amount of the incentives earned that is in excess of the required loan payment.

7. The method of claim 3 further comprising:

applying with the computer system an amount of the incentives earned that is in excess of the required loan payment to a principal of the advance-incentive loan.

8. The method of claim 3 further comprising:

applying with the computer system an amount of the incentives earned that is in excess of the required loan payment to a subsequent bill.

9. The method of claim 1 further comprising:

presenting with the computer system to the purchaser from the seller a statement detailing charges for purchases, incentives earned, and amount of incentives earned applied to a loan payment.

10. The method of claim 1 further comprising:

collecting with the computer system funds at an undiscounted price for goods or services purchased; and

applying with the computer system a portion of said funds as payment on the advance-incentive loan, the portion being based on incentives earned.

11. The method of claim 10 further comprising:

collecting with the computer system an additional amount to cover a loan payment shortfall where the incentives earned during a period are less than a required loan payment.

12. The method of claim 1 wherein, in determining the loan amount, the advance-incentive-loan computer system creates an amortization schedule for the present value of the difference using the interest rate and the time period.

13. The method of claim 1 wherein the seller of the goods or services utilizes the computer system to loan the amount to the purchaser.

14. The method of claim 1 wherein a third party financial institution utilizes the computer system to loan the amount to the purchaser.