Financial Collaboration Networks

Abstract

The disclosed system and method for providing financial collaboration networks generally includes a data processing system adapted to permit a plurality of group collaborators to perform financial transactions with a plurality of users or network participants. Representative embodiments of the present invention generally provide web-based financial collaboration systems that may be adapted to permit a plurality of borrowers, for example, to negotiate more favorable terms with a lender for subsequent loans made to the borrower members of the collaborative group.

1 - 62 . (canceled) 
     
     
         63 . An online network for peer-to-peer portfolio-based financial transactions, the online network comprising:
 a plurality of network participants having a plurality of networked computers with Internet accessible software processes allowing each of the plurality of network participants to invest in an investment that issues at least one loan or advance,
 wherein the plurality of network participants request the at least one loan or advance from the investment directly through an entity administering the investment, 
 wherein the investment may be initiated by at least one of the entity and the plurality of network participants, 
 wherein the investment is structured to reduce risk, 
 wherein the investment may contain an additional risk reducing feature to further offset a default risk of the investment; and 
 wherein the investment is located at a destination; and 
   a data processing system in communication with the plurality of networked computers, the data processing system being configured to manage a corresponding account for each of the plurality of network participants,
 wherein the data processing system performs financial transactions including a payment deposit related to investment in a portfolio, a loan repayment deposit, a payment distribution associated with the corresponding account for each of the plurality of network participants, loan or advance requests of the plurality of network participants, and collection of loan fees from the plurality of network participants, 
 wherein the data processing system collects a network participants' personal and credit information, 
 wherein the data processing system combines deposits from the plurality of network participants in a loan fund; wherein loans or advances requested by the plurality of network participants are issued on a first date by the data processing system from the loan fund based on a funding criteria, 
 wherein the data processing system determines whether one or more network participants of the plurality of network participants has repaid the requested loan or advance on at least a second date, 
 wherein the data processing system may be designed to redistribute at least a portion the portfolio fee among the plurality of network participants who repaid their respective loan by at least the second date, and 
 wherein the data processing system calculates at least one of a gain and a loss on the investment for at least one lender. 
   
     
     
         64 . The online network of  claim 63 , wherein the plurality of network participants who did not repay their loans on at least the second date are sent to collections. 
     
     
         65 . The online network of  claim 63 , wherein the advanced loan fees may be charged at the time the loan is provided. 
     
     
         66 . The online network of  claim 63 , wherein an advanced fee can be charged at the time the loan is repaid with or without interest. 
     
     
         67 . The online network of  claim 63 , wherein the loan fee can be structured as the difference between the amount of the loan provided to the network participant and the amount of the loan that is repaid by the network participant. 
     
     
         68 . The online network of  claim 63 , wherein the loan fee can be a discount on the loan at the time of funding or repayment of the loan plus a fee amount. 
     
     
         69 . The online network of  claim 63 , wherein the data processing system, based on lender instructions can reinvest a gain in the investment. 
     
     
         70 . The online network of  claim 63 , wherein the data processing system, based on lender instructions, can invest a gain in a money market account and other investment vehicles. 
     
     
         71 . The online network of  claim 63 , wherein the data processing system, based on lender instructions, can return a gain to the lender. 
     
     
         72 . The online network of  claim 63 , wherein the funding criteria include at least one of following: rating, track record, credit worthiness, length of employment, verifiable references, collateral, asset guarantees and propensity to pay. 
     
     
         73 . The online network of  claim 63 , wherein a portfolio is hosted on at least one of an on-line financial company, a market place, an exchange, an on-line group and a social network. 
     
     
         74 . The online network of  claim 63 , wherein the loans are structured as traditional installment loans, wherein interest is paid during the course of a loan repayment agreement or as traditional cash advances. 
     
     
         75 . The online network of  claim 63 , wherein a type of loan is as at least one of a home loan, an auto loan, a credit card loan, a home equity loan, an unsecured loan, a secured loan, a student loan, a purchased goods loan, a services loan and a payday loan and advance. 
     
     
         76 . The online network of  claim 63 , wherein an investment's risk is reduced by at least one of a traditional diversified portfolio, a traditional diversified fund, and a syndicated structure. 
     
     
         77 . The online network of  claim 76 , wherein the diversified portfolios may be set up by various risk profiles such as only a prime credit portfolio or a combination of prime, regular and sub-prime risks. 
     
     
         78 . The online network of  claim 63 , wherein the risk reducing feature includes at least one of a holding a portion of the loan as collateral, wherein the network participants are encouraged to repay the loan by refunding a portion of the loan fees charged to those who repay, and wherein a refunding of fees is based on the performance of the investment. 
     
     
         79 . The online network of  claim 63 , wherein the destination of the investment is at least one of a financial company, a marketplace, an exchange, an on-line group and a social network. 
     
     
         80 . The online network of  claim 63 , wherein lenders may be required to keep their funds in the investment for a set period such as a year. 
     
     
         81 . The online network of  claim 63 , wherein the redistribution of at least the portion of the portfolio fee may be based on the performance of the fund. 
     
     
         82 . An online network for financial collaboration and lending, the online network comprising:
 a plurality of network participants comprising private individuals and businesses entities;   an online exchange having a plurality of lending group parameters, wherein the lending group parameters are created by at least one of a market place and a network participant, wherein the lending group parameters allow participants to at least one of offer to lend and advance or ask for loans and advances directly with other participants based on risk criteria and credit terms, invest and fund funds that offer to lend and advance funds to other participants based on risk criteria and credit terms, allow participants to request loans and advances from created funds based on credit criteria and credit terms; wherein at least a first network participant is a borrower and a second network participant is a lender; wherein the network participants can be lenders and borrowers; wherein at least one of the network participants can structure the lending group parameters to reduce risk; wherein at least one of the network participants can structure the lending group parameters to comply with international, federal, state, and local credit laws; and wherein at least one of the network participants can structure the lending group parameters to allow for loan syndication; and   a data processing system for managing a corresponding account for each of the plurality of network participants, wherein the data processing system is adapted to perform financial transactions including payment deposits and payment distributions associated with the corresponding account of the plurality of network participants, wherein the data processing system collects personal and credit information from the network participants, wherein the data processing system receives instructions and parameters from the network participants for financial transactions; wherein the data processing system receives an electronic payment from at least one participant of the plurality of network participants; wherein the data processing system issues at least one payment to a payment recipient; wherein the payment recipient comprises a participant of the plurality of network participants; wherein the payment recipient is intended to repay the at least one payment through the data processing system; and wherein the data processing system is located on a computer network based system that is Internet accessible.   
     
     
         83 . The online network of  claim 82 , wherein the online exchange is one of a for-profit entity or a non-profit entity. 
     
     
         84 . An online network of  claim 82 , wherein the online exchange further comprises an entity that allows for the aggregation of a plurality of participants that facilitates and allows person to person financial collaboration.