Financing method incorporating new use of trade acceptance drafts

A financing method incorporating a new use of at least one trade acceptance draft (TAD) which is utilized by a buyer (B), a seller (S) and a financial organization (FO), said method including the following steps:

• FO and S conclude a TAD Participation Agreement defining rights and obligations of each party to the other which include the use of TADs;
• S and B conclude a TAD Program Agreement under which S agrees to sell goods and/or services to B and B agrees to pay for the goods and/or services by one or more TADs which total the entire amount of the purchase price;
• B sends S a purchase order pursuant to the TAD Program Agreement;
• S pursuant to the TAD Participation Agreement notifies FO of the order and requests pre-approval by FO;
• S upon receipt of FO approval supplies to B said goods and/or services and sends B the TAD or TADs;
• B accepts goods and/or services and signs and returns to S the TAD or TADs;
• S endorses the TAD or TADs and forwards same to FO;
• FO upon receipt of the endorsed TAD or TADs purchases same from S in accordance with the terms of the TAD Participation Agreement and pays over a major percentage of the purchase price to S;
• FO, encodes each TAD using a code mutually agreed upon in advance by the FO and B's bank and then upon the due date of the TAD deposits the endorsed TAD or TADs for collection in the normal banking system in the same manner as any check drawn upon B's account;
• and
• FO collects the purchase price from B's bank and thereafter remits the balance of the purchase price, less the fees and charges of FO, to S.