Method for extended term financing using time drafts

A method for extended term financing, for enabling a buyer to finance the purchase of goods or services from a seller with the services of a finance company, comprising the steps of:

• the seller and the finance company enter into a time draft agreement to establish terms and conditions for extended term financing using time drafts;
• the finance company provides the seller with blank time draft forms and computer encoding software for use by the seller in encoding the forms with banking information;
• the seller and buyer into an agreement whereby the seller agrees to sell certain goods and services to the buyer on an extended payment term basis;
• the buyer sends the buyer's bank account information to the seller, which then forwards the information to the finance company;
• the finance company performs a credit investigation of the buyer and, if credit is approved, notifies the seller of the approval;
• the seller ships the purchased goods or services to the buyer, prepares a time draft having a face payment amount and a future payment due date, encodes the buyer's bank account information onto a time draft using the encoding software, and sends the time draft to the buyer for signature;
• upon signature, the buyer returns the time draft to the seller;
• the seller tenders the time draft to the finance company for purchase;
• upon approval, the finance company purchases the time draft from the seller and sends to the seller a single payment equal to the full face amount of the time draft, minus a service fee;
• at the maturity date of the time draft, the finance company deposits the time draft with the finance company's regular bank in the same manner as a regular check;
• the time draft passes into regular banking channels for payment of the full face amount from buyer's bank account.