Method and system for distributing receivables

a receivable and system technology, applied in the field of method and system for distributing receivables, can solve the problems of limiting the efficiency of buyers and sellers of conventional forward flow sale arrangements, and limiting the efficiency of market participants, so as to reduce the risk of holding period, and reduce the effect of lost collection opportunities

US20080010185A1Inactive Publication Date: 2008-01-10LOANTRADE
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Patent Information

Authority / Receiving Office
US · United States
Patent Type
Applications(United States)
Current Assignee / Owner
Publication Date
2008-01-10
Estimated Expiration
Not applicable · inactive patent

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Abstract

The method and system of the invention is directed to a process for the optional acquisition of receivables. The method of the invention, which may be characterized as an Optional Purchase Commitment (“OPC”) is a process by which a potential grantee, for example a buyer, may pay for the right, but not the obligation, to acquire receivables from a grantor, for example a seller. The OPC process of the invention enables a grantor of such receivables, typically a credit grantor, to estimate the amount of its future receivables and enter into OPC agreements to convey those expected receivables under a fixed arrangement at a specific time in the future to a grantee, for example a buyer. A grantor, a grantee, or a third party acting on behalf of either a grantor or a grantee, or independently, may initiate the OPC process of the invention. The OPC process may be utilized in conjunction with existing marketing processes. The OPC process of the invention provides a time horizon or option period. This time horizon or option period is advantageous for both grantor and grantee. Further, the process of the invention may be used in a third party exchange or clearinghouse, which may be implemented utilizing a computer arrangement.
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Description

FIELD OF THE INVENTION

[0001] The present invention relates broadly to a method and system for distributing receivables from a first entity to a second entity. BACKGROUND OF THE INVENTION

[0002] The extension of credit is a principal financial underpinning to viable contemporary economic models. The extension of credit may be performed either by businesses that produce and sell goods or services, or alternatively, by financial institutions. Credit may be extended to either consumers or commercial entities. The American Collectors Association (“ACA”) currently estimates the amount of U.S. consumer debt to be at $6.3 trillion and growing.

[0003] Regardless of the source of financing, inevitably some portion of all credit granted results in delinquency and default. Delinquent receivables, for example, are generally considered to be any type of extension of consumer or commercial credit for. which the debtor has failed to satisfy its obligations under a payment agreement with the credit...

Examples

Embodiment Construction

[0065] In the Drawings, FIG. 1 is a diagram illustrating the participants in the OPC process in accordance with the method of the invention. As shown in FIG. 1, the OPC process includes at least one OPC seller 10. Accordingly, it should be appreciated that the OPC process of the invention may include any number of OPC sellers. Additionally, as shown in FIG. 1, another participant in the OPC process of the invention is at least one OPC buyer 20. In a similar manner to the sellers, there may be any number of OPC buyers.

[0066] As shown in FIG. 1, the OPC process of the invention may also include a broker 40. The broker or brokers 40 may participate in the OPC process of the invention in any suitable manner. For example, a broker 40 may be an intermediary between a seller 10 and a buyer 20. Alternatively, a broker 40 may represent either a seller or a buyer, or alternatively, a collection of sellers or a collection of buyers.

[0067]FIG. 2 is a diagram showing further aspects of the OPC...