SUPPLY CHAIN FINANCE SYSTEM

• US 20130179330A1
• Filed: 01/04/2013
• Published: 07/11/2013
• Est. Priority Date: 01/06/2012
• Status: Active Grant

• Current Assignee: PrimeRevenue Incorporated
• Original Assignee: PrimeRevenue Incorporated
• Inventors: Quillian, David W.
• Granted Patent: US 10,026,120 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06F 21/6245 Protecting personal data, e.g. for financial or medical purposes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

In an electronic supply chain finance system, a method of enabling a supplier to obtain funds includes receiving information from a buyer defining a payment obligation, receiving an offer to sell the payment obligation, and providing electronic instructions to print a negotiable instrument issued by the buyer, to the supplier as payee, having a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation.

Claims

1. An electronic supply chain finance system utilized by a buyer, a supplier that provides goods and/or services to the buyer and a financial institution, each of which is remote from the system and accesses the system through a computer network interface, comprising:

a computer-readable medium containing program instructions, and

a processor in operative communication with the computer-readable medium and adapted to execute the program instructions to implement a method comprising the steps of

receiving information from the buyer defining a payment obligation from the buyer to the supplier,

receiving from the supplier an offer to sell the payment obligation,

receiving an acceptance of the offer from the financial institution,

creating, at the system, an electronic record for a negotiable instrument, wherein the buyer is obligor, and the supplier is obligee, of the negotiable instrument, and the negotiable instrument has a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation, and

upon receipt of acceptance of the offer by the financial institution, providing to the financial institution electronic instructions to print the negotiable instrument, indorsed on behalf of the supplier in favor of the financial institution as the payee at least partially effecting a trade between the supplier and the financial institution prior to the maturity date that is based on the negotiation of the negotiable instrument.

2. The system as in claim 1, wherein the payable date is the maturity date.

3. The system as in claim 1, wherein, upon receipt of the information from the buyer defining the payment obligation, the payment obligation is irrevocable by the buyer.

4. The system as in claim 1, wherein the sell offer has a discounted value and a payment date earlier than the maturity date.

5. The system as in claim 1, wherein the negotiable instrument is a time draft, on behalf of the buyer as drawer, to the supplier as payee, and drawn on an account owned or controlled by the buyer.

6. The system as in claim 1, wherein the method implemented by the processor comprises the step of, after receipt of the acceptance and creation of the negotiable instrument record, transferring to the supplier an amount of funds determined by terms of the offer.

7. The system as in claim 1, wherein the creating step implemented by the processor comprises associating the negotiable instrument with an encrypted unique identifier.

8. The system as in claim 1, wherein the program instructions implement the step of creating an electronic negotiable instrument record after implementing the step of receiving the acceptance.

9. The system as in claim 1, wherein upon the receipt of the acceptance of the offer by the financial institution, the method includes the step of receiving, from the financial institution an instruction to print the negotiable instrument, thereby permitting the providing step.

22. The method as in claim 1, wherein the payment obligation is distinct from the negotiable instrument.

10. An electronic supply chain finance system utilized by a buyer, a supplier that provides goods and/or services to the buyer and a financial institution, each of which is remote from the system and accesses the system through a computer network interface, comprising:

a computer-readable medium containing program instructions; and

a processor in operative communication with the computer-readable medium and adapted to execute the program instructions to implement a method comprising the steps of

receiving accounts payable information from the buyer defining a payment obligation from the buyer to the supplier, the payment obligation having a payment value and a payment maturity date,

receiving from the supplier an offer to sell the payment obligation,

receiving an acceptance of the offer from the financial institution,

upon receipt of acceptance of the offer by the financial institution, providing to the financial institution electronic instructions to print a negotiable instrument, indorsed to the financial institution on behalf of the supplier as obligee thereof, wherein the negotiable instrument has the buyer as obligor, supplier as obligee, a payable date based on the maturity date, and a payment value based on the payment amount, at least partially effecting a trade between the supplier and the financial institution prior to the maturity date that is based on the negotiation of the negotiable instrument.

11. The system as in claim 10, wherein the payable date is the maturity date.

12. The system as in claim 10, wherein the negotiable instrument is a time draft, on behalf of the buyer as drawer, to the supplier as payee, and drawn on an account owned or controlled by the buyer.

13. The system as in claim 10, wherein the method implemented by the processor comprises the step of, upon receipt of acceptance of the offer, effecting transfer to the supplier of an amount of funds determined by terms of the offer.

14. An electronic supply chain finance system utilized by a buyer, a supplier that provides goods and/or services to the buyer and a financial institution, each of which is remote from the system and accesses the system through a computer network interface, comprising:

a computer-readable medium containing program instructions; and

a processor in operative communication with the computer-readable medium and adapted to execute the program instructions to implement a method comprising the steps of

receiving information from the buyer defining a payment obligation from the buyer to the supplier corresponding to a transaction in which the supplier provides the goods and/or services to the buyer,

receiving from the supplier an offer to sell the payment obligation,

receiving an acceptance of the offer from the financial institution, and

creating, at the system, an electronic record of a negotiable instrument, wherein the buyer is obligor, and the supplier is obligee of the negotiable instrument, and the negotiable instrument has a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation, and

upon receipt of acceptance of the offer by the financial institution, providing to the financial institution electronic instructions to print the negotiable instrument, wherein pursuant to agreement by the buyer and the supplier, the negotiable instrument substitutes for and extinguishes all other obligations of the buyer to pay the supplier for the goods and/or services corresponding to the transaction.

15. The system as in claim 14, wherein the method comprises, upon receipt of acceptance of the offer by the financial institution and prior to the maturity date, providing the information sufficient to print the negotiable instrument, indorsed on behalf of the supplier in favor of the financial institution as the payee.

16. The system as in claim 15, wherein the method comprises, upon receipt of the acceptance, effecting transfer to the supplier from the financial institution of an amount of funds determined by terms of the offer.

17. The system as in claim 14, wherein the payment obligation comprises an account payable from the buyer to the supplier.

18. The system as in claim 14, wherein the payment obligation arises upon receipt of the information from the buyer, and wherein pursuant to agreement by the buyer the payment obligation is irrevocable by the buyer.

19. An electronic supply chain finance system utilized by a buyer, a supplier that provides goods and/or services to the buyer and a financial institution, each of which is remote from the system and accesses the system through a computer network interface, comprising:

a computer-readable medium containing program instructions; and

a processor in operative communication with the computer-readable medium and adapted to execute the program instructions to implement a method comprising the steps of;

receiving information from the buyer defining a payment obligation from the buyer to the supplier corresponding to a transaction in which supplier provides the goods and/or services to the buyer,

receiving from the supplier an offer to sell the payment obligation,

receiving an acceptance of the offer from the financial institution,

creating, at the system, an electronic record of a negotiable instrument, wherein the buyer is obligor, and the supplier as obligee of the negotiable instrument, and the negotiable instrument has a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation,

upon receipt of acceptance of the offer by the financial institution and prior to the maturity date, providing to the financial institution electronic instructions to print the negotiable instrument, indorsed on behalf of the supplier in favor of the financial institution as the payee, and

upon the receipt of acceptance, effecting transfer to the supplier from the financial institution of an amount of funds determined by terms of the offer.

20. The system as in claim 19, wherein the payment obligation arises upon receipt of the information from the buyer, and wherein pursuant to agreement by the buyer the payment obligation is irrevocable by the buyer.

21. A method of providing funds to a supplier that provides goods and/or services to a buyer, comprising:

receiving from the buyer via a computer network, at a computer system remote from the buyer, the supplier and a financial institution, information defining a payment obligation from the buyer to the supplier corresponding to a transaction in which supplier provides the goods and/or services to the buyer;

receiving at the computer system, from the supplier via a computer network, an offer to sell the payment obligation;

receiving at the computer system via a computer network an acceptance of the offer from the financial institution;

creating at the computer system an electronic record for a negotiable instrument, wherein the buyer is obligor, and the supplier is obligee of the negotiable instrument, and the negotiable instrument has a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation;

upon receipt of the acceptance and prior to the maturity date, electronically providing to the financial institution electronic instructions to print the negotiable instrument, indorsed on behalf of the supplier in favor of the financial institution as the payee; and

upon the receipt of acceptance, effecting transfer to the supplier from the financial institution of an amount of funds determined by terms of the offer.

23. An electronic supply chain finance system utilized by a buyer, a supplier that provides goods and/or services to the buyer and a financial institution, each of which is remote from the system and accesses the system through a computer network interface, comprising:

a computer-readable medium containing program instructions, and

a processor in operative communication with the computer-readable medium and adapted to execute the program instructions to implement a method comprising the steps of

receiving information from the buyer defining a payment obligation from the buyer to the supplier,

receiving from the supplier an offer to sell the payment obligation,

receiving an acceptance of the offer from the financial institution,

creating, at the system, an electronic record for a negotiable instrument, wherein the buyer is obligor, and the supplier is obligee, and the negotiable instrument has a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation, and

upon receipt of the acceptance from the financial institution, providing electronic instructions to print the negotiable instrument, indorsed on behalf of the supplier in favor of the financial institution as the payee and at least partially effecting a trade between the supplier and the financial institution prior to the maturity date.

24. An electronic supply chain finance system utilized by a buyer, a supplier that provides goods and/or services to the buyer and a financial institution, each of which is remote from the system and accesses the system through a computer network interface, comprising:

a computer-readable medium containing program instructions, and

a processor in operative communication with the computer-readable medium and adapted to execute the program instructions to implement a method comprising the steps of

receiving information from the buyer defining a payment obligation from the buyer to the supplier, the payment obligation having a payment value and a payment maturity date,

receiving from the supplier an offer to sell the payment obligation,

receiving an acceptance of the offer from the financial institution,

upon receipt of the acceptance from the financial institution, providing electronic instructions to print the negotiable instrument, indorsed on behalf of the supplier in favor of the financial institution as the payee, wherein the negotiable instrument has the buyer as obligor, supplier as obligee, a payable date based on the maturity date, and a payment value based on the payment amount, in effecting a trade between the supplier and the financial institution prior to the maturity date.