Factoring system and method

Abstract

A computerized system and method for facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices includes a computer program that receives instructions from a client to submit one or more invoices to a funding source for an advance of funds on accounts receivable on the chosen invoices and that provides access to invoice data to a funding source for determining whether the funding source will advance funds on the chosen invoices.

1 . A computerized system for facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, wherein the transaction occurs over through an Internet portal that
 registers a client (“transaction client”) to conduct transactions on the portal,   receives a request from a customer (“transaction customer”) to conduct a transaction with the transaction client, and   following execution of the transaction between the transaction client and the transaction customer, stores data describing an invoice (“transaction invoice”) between the transaction customer and the transaction client arising from the transaction, the invoice data including the identity of the transaction client, the identity of the transaction customer and the amount owing on the transaction invoice, said system comprising a computer program that is in communication with said portal and that is configured to   receive an advance rate at which a funding source is willing to advance funds to said client on said client's invoices;   receive a request from said transaction client that said transaction invoice be submitted to said funding source for an advance of funds on accounts receivable on said transaction invoice;   responsively to said request, download said invoice data from said portal;   provide said funding source access to said invoice data describing said transaction invoice,   upon receiving instructions from said funding source to advance funds to said transaction client, determine an amount of advanced funds based on said advance rate and said amount owing.   
   
   
       2 . The system as in  claim 1 , including
 a database storing financing terms for each client upon which a funding source is willing to advance funds to said client on said client's invoices, said financing terms including said advance rate, a fee schedule, and a charge back period,   wherein said computer program is in communication with said database and supports at least one rule that determines, based on said invoice data, the state of a predefined parameter that is a condition to factoring invoices, and   wherein said computer program is configured to
 determine, according to said at least one rule, said state of each said predefined parameter for said transaction invoice, 
 when said funding source accesses said invoice data of said transaction invoice, display, in association with each said transaction invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter, 
 where said funding source chooses to advance funds to said transaction client, determine
 said amount of advanced funds, 
 a charge back time based on said charge back period, and 
 factoring fees based on said fee schedule, and 
 
 store said advance amount, said charge back time and said factoring fees in said database in association with said transaction invoice. 
   
   
   
       3 . A computerized method of facilitating proposed factoring transactions between a funding source and a client in which the funding source advances funds to the client based on accounts receivable to the client by one or more customers on one or more invoices, said method comprising the steps of:
 registering a client to conduct transactions on an Internet portal;   receiving at said portal a request from a customer to conduct a transaction with said client;   following execution of said transaction, storing data at said portal identifying said transaction, wherein said transaction data includes the identity of said client, the identity of said customer owing on an invoice arising from said transaction and the amount of said invoice; and   where said client has requested that a funding source advance funds on accounts receivable on one or more said invoices chosen by said client, downloading said transaction data relating to said one or more chosen invoices from said portal to said funding source.   
   
   
       4 . The method as in  claim 3 , wherein said transaction data includes a transaction identifier unique to each said transaction. 
   
   
       5 . The method as in  claim 4 , wherein, at said downloading step, said portal downloads said transaction data responsively to receipt from said funding source of one or more said transaction identifiers corresponding to said one or more chosen invoices. 
   
   
       6 . The method as in  claim 4 , wherein said portal assigns said transaction identifier. 
   
   
       7 . The method as in  claim 3 , wherein said client requests that said funding source advance said funds at said downloading step through a third party factoring administrator over the Internet. 
   
   
       8 . The method as in  claim 7 , wherein said portal maintains a link thereon to said funding source, wherein said client, upon choosing to request said funds at said downloading step, links to said funding source through said link and wherein said funding source redirects said client to said factoring administrator. 
   
   
       9 . The method as in  claim 7 , wherein said portal maintains a link thereon to said factoring administrator and wherein said client, upon choosing to request said funds at said downloading step, links to said factoring administrator through said link. 
   
   
       10 . The method as in  claim 7 , wherein said factoring administrator downloads, from said portal, data about said client stored at said portal at said registering step. 
   
   
       11 . The method as in  claim 10 , wherein said factoring administrator presents an electronic application form to said client and wherein said factoring administrator at least partly completes said form with data downloaded by said factoring administrator from said portal. 
   
   
       12 . The method as in  claim 10 , wherein, upon receiving a request from said client to advance funds on said chosen invoices, said factoring administrator, at downloading step, receives data from said client identifying said one or more chosen invoices and wherein said factoring administrator downloads from said portal said transaction data relating to said one or more chosen invoices and makes said transaction data available to said funding source. 
   
   
       13 . The method as in  claim 7 , including
 establishing at least one rule at said factoring administrator that determines, based on said transaction data relating to said chosen invoices, the state of a predefined parameter that is a condition to factoring said one or more chosen invoices;   determining, according to said at least one rule, said state of each said predefined parameter for each said of said one or more chosen invoices; and   wherein, when said funding source accesses said transaction data relating to said one or more chosen invoices, said factoring administrator displays, in association with each said chosen invoice and for each said predefined parameter, a predetermined symbol that identifies said state of said parameter.   
   
   
       14 . The method as in  claim 13 , wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been verified as a valid invoice. 
   
   
       15 . The method as in  claim 13 , wherein a first said parameter describes whether an agreement exists, between said funding source and said customer owing on said chosen invoice associated with said first parameter, in which said customer agrees to pay to said funding source amounts owed by said customer on invoices on which funds have been advanced by said funding source. 
   
   
       16 . The method as in  claim 13 , wherein a first said parameter describes whether said client to which said chosen invoice associated with said first parameter is owed is credit-worthy. 
   
   
       17 . The method as in  claim 13 , wherein a first said parameter describes whether said chosen invoice associated with said first parameter has been paid. 
   
   
       18 . The method as in  claim 11 , wherein
 said electronic form requests data for said client that describes said client's business and financial history, and   said factoring administrator stores financing terms for each said client upon which said funding source is willing to advance funds to said client on said client's invoices, said financing terms including a fee schedule, an advance rate and a charge back period.   
   
   
       19 . The method as in  claim 18 , wherein, following said display step, said funding source chooses whether to advance funds to said client on said one or more chosen invoices responsively to said state of each said parameter defined by said at least one rule for each said one or more chosen invoice. 
   
   
       20 . The method as in  claim 19 , wherein, where said funding source chooses to advance funds to said client,
 determining
 an amount of advanced funds based on said advance rate, 
 a charge back time based on said charge back period and 
 factoring fees based on said fee schedule and 
   storing said advance amount, said charge back time and said factoring fees in said database in association with said one or more chosen invoices.   
   
   
       21 . The method as in  claim 19 , wherein said funding source, prior to said choosing step and where said funding source has not previously factored invoices for said client, reviews said client data and said customer data and determines whether to accept said client for consideration of its invoices for factoring.