Hybrid installment-revolving credit method and system
OwnerJeffrey A. Colborninventor
Life of this patent
Estimating the term…
Abstract
A hybrid installment-revolving credit method and system involves establishing a contractually fixed set of payments to be paid on a contractually fixed schedule for each purchase made on the revolving credit line, so that the cost and terms of credit are fixed in the purchase contract and no interest is charged on the balance due. In one embodiment, the method and system involves purchase and immediate installment resale at a markup, with the ownership rights of the purchased goods or services passing through the creditor from the supplier to the purchaser.
Claims28
A method for providing credit, comprising:
- establishing a revolving credit line between a creditor and a credit customer;
- communicating a purchase request to the creditor using a first computing device identifying a product or service to be purchased from a supplier using the revolving credit line;
- communicating approval by the creditor of the purchase to the supplier using a second computing device;
- creating a financial obligation of the credit customer to the creditor by transferring funds from the creditor to the supplier to pay for the purchase;
- arranging for the transfer of the ownership rights of the product or service to the credit customer;
- and
- contractually establishing using a computer processing unit a fixed number of fixed payments to be paid on a fixed schedule by the credit customer to the creditor to discharge the financial obligation, with no crediting or debiting interest charges for early or late payment.
A system for providing credit, comprising:
- a revolving credit line contract between a creditor and a credit customer;
- a creditor communication apparatus for receiving a purchase request from the credit customer identifying a product or service to be purchased from a supplier using the revolving credit line and communicating approval by the creditor of the purchase to the supplier;
- a database for entering, storing, and retrieving information regarding the purchase and an associated financial obligation of the credit customer to the creditor;
- a communication apparatus for arranging the transfer of funds from the creditor to the supplier to pay for the purchase, arranging the transfer of the ownership rights of the product or service to the credit customer, and recording the transfers in the database;
- a computer processing unit programmed to compute a fixed number of fixed payments, and a fixed schedule over which the fixed payments are to be made by the credit customer to the creditor to discharge the financial obligation, with no crediting or debiting interest charges for early or late payment.
A method for providing credit, comprising:
- establishing a revolving credit line with a credit customer;
- receiving a purchase request from the credit customer using a first computing device via a network identifying a product or service to be purchased from a supplier using the revolving credit line;
- communicating approval of the purchase to the supplier via the network using a second computing device;
- creating a financial obligation of the credit customer to the creditor by transferring funds from the creditor to the supplier to pay for the purchase;
- arranging for the transfer of ownership rights of the product or service to the credit customer;
- and
- contractually establishing using a computer processing unit a fixed number of fixed payments to be paid on a fixed schedule by the credit customer to the creditor to discharge the financial obligation, with no crediting or debiting interest charges for early or late payment.
Dependencies are inferred from the claim text.