Methods and systems for financing and executing transactions

• US 20010034681A1
• Filed: 01/24/2001
• Published: 10/25/2001
• Est. Priority Date: 01/26/2000
• Status: Abandoned Application

• Current Assignee: Joseph W. Krum, Preston H. Abbott
• Original Assignee: Joseph W. Krum, Preston H. Abbott
• Inventors: Krum, Joseph W., Abbott, Preston H.
• Application Number:
  US09/769,121
• Publication Number:
  US 20010034681A1
• Time in Patent Office: Days
• US Class Current: 705/35
• 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

Abstract

Methods and systems for executing and financing transactions of goods and commodities as an insulated parent company are described. The method includes the steps of incorporating wholly owned subsidiary companies to handle trading and financing issues, approving sellers to participate according to a seller participation agreement, approving buyers to participate according to a buyer participation agreement, and securing capital to facilitate financing through a financing subsidiary.

Claims

1. A method for executing and financing transactions of goods and commodities as a parent company, said method comprising the steps of:

incorporating a wholly owned financing subsidiary company and a wholly owned trading subsidiary company;

approving sellers to participate according to a seller participation agreement;

approving buyers to participate according to a buyer participation agreement; and

securing capital to facilitate financing through the financing subsidiary.

2. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to sell goods to the trading subsidiary on terms and conditions as agreed.

3. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to only hold the trading subsidiary responsible for payment on terms agreed to with the trading subsidiary.

4. A method according to

claim 3

wherein said step of agreeing to look only to the trading subsidiary for payment on terms agreed to further comprises the step of varying the terms based on the creditworthiness of the seller.

5. A method according to

claim 4

wherein said step of varying the terms based on the creditworthiness of the seller further comprises the step of determining the creditworthiness of the seller by the parent company and a supplier of capital.

6. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to assign all of the rights in a shipment to the trading subsidiary.

7. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing that the buyer has a right to enforce any claims for non-conformity of shipment and non-performance.

8. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to resolve any disputes with a buyer in accordance with a dispute resolution mechanism selected by the parent company.

9. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to grant the trading subsidiary a security interest in seller'"'"'s right to receive payment in order to secure seller'"'"'s obligations under the participation agreement.

10. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to assign the trading subsidiary receivables and rights to the financing subsidiary and the supplier of capital.

11. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to indemnify the trading subsidiary for losses resulting from seller non-performance.

12. A method according to

claim 1

wherein said step of approving sellers to participate further comprises the step of agreeing to waive any set-off rights the seller may have against the buyer or the trading subsidiary as applicable to any receivable held by the financing subsidiary.

13. A method according to

claim 1

wherein said step of approving buyers to participate further comprises the step of agreeing to pay the purchase price to the trading subsidiary for orders within an agreed upon time period by a method and at a place previously agreed to.

14. A method according to

claim 1

wherein said step of approving buyers to participate further comprises the step of agreeing to pay ancillary charges for at least one of shipping, handling, insurance and taxes.

15. A method according to

claim 1

wherein said step of approving buyers to participate further comprises the step of agreeing to be subject to suspension for a specified period in the event of a dispute as to conformity of goods shipped.

16. A method according to

claim 15

wherein said step of agreeing to be subject to suspension further comprises the step of being obligated to pay at the end of the suspension period.

17. A method according to

claim 16

wherein said step of being obligated to pay further comprises the step of paying with interest if the dispute is not resolved in the buyer'"'"'s favor.

18. A method according to

claim 1

wherein said step of approving buyers to participate further comprises the step of agreeing to only hold seller responsible for performance or conformity of goods.

19. A method according to

claim 1

wherein said step of approving buyers to participate further comprises the step of agreeing on a timing of transfer of title and risk of loss.

20. A method according to

claim 1

wherein said step of approving buyers to participate according to a buyer participation agreement further comprises the step of agreeing to provide security for the buyer'"'"'s obligations.

21. A method according to

claim 1

wherein said step of approving buyers to participate according to a buyer participation agreement further comprises the step of agreeing to indemnify the trading subsidiary for losses resulting from buyer non-performance.

22. A method according to

claim 1

wherein said step of approving buyers to participate according to a buyer participation agreement further comprises the step of agreeing to waive any set-off rights the buyer may have against the seller or the trading subsidiary as applicable to any receivable held by the financing subsidiary.

23. A method according to

claim 1

wherein said step of approving buyers to participate according to a buyer participation agreement further comprises the step of agreeing to the assignment of the trading subsidiary receivables and rights to the financing subsidiary and a supplier of capital.

24. A system for executing and financing transactions of goods and commodities for a parent company through a wholly owned financing subsidiary and a wholly owned trading subsidiary, said system comprising:

at least one computer;

a server configured to approve sellers of goods and commodities according to a seller participation agreement and approve buyers of goods and commodities according to a buyer participation agreement;

a network connecting said at least one computer to said server; and

a user interface allowing a user to input and receive information relating to the buying and selling of the goods and commodities.

25. A system according to

claim 24

wherein said server is further configured to facilitate securing of capital for a transaction through the financing subsidiary of the parent company.

26. A system according to

claim 24

wherein said server configured to facilitate sales of goods and commodities to the trading subsidiary of the parent company according to agreed upon terms and conditions within the sellers participation agreement.

27. A system according to

claim 24

wherein said server configured to, after a sale of goods or commodities, notify the trading subsidiary for payment on terms agreed to with the seller.

28. A system according to

claim 27

wherein said server configured to vary the terms based on a creditworthiness of the seller.

29. A system according to

claim 28

wherein said server configured to determine the creditworthiness of the seller based on input to the server by at least one of the parent company and a supplier of capital.

30. A system according to

claim 24

wherein said server configured to accept input from a seller agreeing to assign all rights in a shipment to the trading subsidiary.

31. A system according to

claim 24

wherein said server configured to accept input from a seller agreeing that a buyer has a right to enforce any claims for non-conformity of shipment and non-performance.

32. A system according to

claim 24

wherein said server configured to accept input from sellers agreeing to resolve any disputes with a buyer in accordance with a dispute resolution mechanism selected by the parent company.

33. A system according to

claim 24

wherein said server configured to accept input from sellers agreeing to grant the trading subsidiary a security interest in seller'"'"'s right to receive payment in order to secure seller'"'"'s obligations under the participation agreement.

34. A system according to

claim 24

wherein said server configured to accept input from sellers agreeing to assign the trading subsidiary receivables and rights to the financing subsidiary and the supplier of capital.

35. A system according to

claim 24

wherein said server configured to accept input from sellers agreeing to indemnify the trading subsidiary for losses resulting from seller non-performance.

36. A system according to

claim 24

wherein said server configured to accept input from sellers agreeing to waive any set-off rights the seller may have against a buyer or the trading subsidiary as applicable to any receivable held by the financing subsidiary.

37. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to pay the purchase price to the trading subsidiary for orders within an agreed upon time period by a method and at a place previously agreed to.

38. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to pay ancillary charges of at least one of shipping, handling, insurance and taxes.

39. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to be subject to suspension for a specified period in the event of a dispute as to conformity of goods shipped.

40. A system according to

claim 39

wherein said server configured to accept input from buyers agreeing to an obligation to pay at the end of the suspension period with interest if the dispute is not resolved in the buyer'"'"'s favor.

41. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing on a timing of a transfer of title and risk of loss.

42. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to only hold seller responsible for performance or conformity of goods.

43. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to provide security for the buyer'"'"'s obligations.

44. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to indemnify the trading subsidiary for losses resulting from buyer non-performance.

45. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to waive any set-off rights the buyer may have against a seller or the trading subsidiary as applicable to any receivable held by the financing subsidiary.

46. A system according to

claim 24

wherein said server configured to accept input from buyers agreeing to the assignment of the trading subsidiary receivables and rights to the financing subsidiary and a supplier of capital.

47. A system according to

claim 24

wherein said server is configured to allow a user to input data via the Internet.

48. A system according to

claim 24

wherein said server is configured to receive user data via an Intranet.

49. A system according to

claim 24

wherein said network is one of a wide area network and a local area network.