Systems and Methods for Credit Enhancement for Trade Credit Transactions
AssigneeNowaccount Network Corporation
InventorsJohn Benjamin Hayes, Lara O'Connor Hodgson, Stacey Yvonne Abrams
Life of this patent
Estimating the term…
Abstract
Embodiments of the disclosure can include systems and methods for credit enhancement for trade credit transactions. In one embodiment, a method of reducing risk in trade credit transactions can be provided. The method can include receiving an offer to sell a trade receivable from a business; obtaining a credit rating for the business; instructing a sellers cooperative to pay a first portion of a purchase price to the seller, the sellers cooperative comprising small businesses that purchase trade receivables; and instructing a lender to release a second portion of the purchase price held in escrow to the seller after a period of time has passed.
Claims20
A method of reducing risk in trade credit transactions, comprising:
- receiving an offer to sell a trade receivable from a business;
- obtaining a credit rating for the business;
- instructing a sellers cooperative to pay a first portion of a purchase price to the seller, the sellers cooperative comprising small businesses that sell trade receivables to a servicer of trade receivables;
- and
- instructing a lender to release a second portion of the purchase price held in escrow to the seller after a period of time has passed.
A method of reducing risk in trade credit transactions, comprising:
- receiving an offer to sell a trade receivable from a business;
- obtaining a credit rating for the business;
- admitting business to a sellers cooperative, the sellers cooperative comprising a plurality of companies selling trade receivables to the servicer;
- purchasing a guarantee on the business, the guarantee paying a benefit if the business fails during a period of time after the sale of the trade receivable;
- instructing a sellers cooperative to pay a first portion of a purchase price for the trade receivable to the business upon purchasing the trade receivable;
- and
- paying a second portion of the purchase price to the business after a period of time has passed.
A method of reducing risk in trade credit transactions, comprising:
- receiving an offer to sell a trade receivable from a business;
- obtaining credit rating for the business;
- paying a first portion of a purchase price to the business upon purchasing the trade receivable;
- assigning the purchased trade receivable to a cooperative of sellers, the cooperative of sellers holding assets including assigned trade receivables;
- and
- issuing equity in the cooperative of sellers to the business.
Dependencies are inferred from the claim text.