Method and System for Providing Financing

Abstract

Methods for financing dealer debt instruments for customers of a dealer are disclosed. One method, among others, an underwriter system that finances a dealer debt instrument based upon at least one of customer information, product information, and transaction information for the dealer debt instrument. The underwriter system may calculate an initial purchase offer, and then adjust the initial purchase offer based at least upon at least one of product information and transaction information. In some situations, the underwriter system may provide a dealer with multiple purchase offers for one debt instrument.

What is claimed is: 
     
         1 . A method for providing a financing service, the method comprising the steps of:
 receiving information related to a financing transaction, the information including information about the customer's capacity to pay, the collateral and the credit worthiness of the customer;   simultaneously providing multiple offers for financing the transaction with each offer including an advancement amount and a sharing percentage of future payments and each offer is based at least in part on at least a portion of the information received; receiving an offer selection; and   incorporating the financed transaction into a portfolio of transactions, the portfolio including a maximum value and tolling that value by the value of the financed transaction.   
     
     
         2 . The method of  claim 1 , wherein the step of receiving information related to the financing transaction further comprises receiving demographic information pertaining to the customer, and the step of providing multiple offers for financing the transaction further comprises determining if an initial offer is to be made based on the demographic information. 
     
     
         3 . The method of  claim 2 , wherein the demographic information includes the state of the customer and the step of providing multiple offers further comprises providing offers that have a constant yield based on an interest rate identified for the particular state. 
     
     
         4 . The method of  claim 2 , wherein the step of receiving information about the credit worthiness of the customer further comprises receiving a credit score for the customer. 
     
     
         5 . The method of  claim 2 , wherein the step of receiving information about the credit worthiness of the customer further comprises calculating a credit score for the customer using a proprietary algorithm. 
     
     
         6 . The method of  claim 2 , wherein the step of receiving information about the credit worthiness of the customer further comprises calculating a credit score for the customer using a proprietary algorithm and information from a credit report generated by a credit bureau. 
     
     
         7 . The method of  claim 6 , wherein the portfolio is closed when a plurality of financial transactions summing to a value within a threshold of the portfolio value have been incorporated. 
     
     
         8 . The method of  claim 7 , wherein as payments are collected on the debt instruments in the portfolio, funds are accumulated to meet a minimum reserve value. 
     
     
         9 . The method of  claim 7 , wherein as payments are collected on the debt instruments in the portfolio, funds are accumulated to meet a reserve value calculated to be a percentage of the total amount of advanced funds represented by the debt instruments in the portfolio. 
     
     
         10 . The method of  claim 7 , wherein as payments are collected on the debt instruments in the portfolio, funds are accumulated to meet a minimum reserve value calculated to be a percentage of the total amount of advanced funds outstanding at the end of a payment cycle and once the reserve is met, allocating funds from the reserve to the dealer down to the minimum reserve value. 
     
     
         11 . The method of  claim 7 , wherein as payments are collected on the debt instruments in the portfolio, funds are accumulated to meet a minimum reserve value calculated to be a percentage of the total amount of advanced funds represented by the debt instruments in the portfolio and further comprising the steps of:
 at the end of a payment cycle, recalculating a new minimum reserve value based on the present value of the outstanding balance of the advanced funds;   if the funds in the reserve exceed the new minimum reserve value, distributing those funds that exceed the new minimum reserve value; and   if the funds in the reserve do not exceed the new reserve value, continue collecting payments for the next payment cycle.   
     
     
         12 . The method of  claim 11 , wherein the step of providing multiple offers further comprises providing three offers with varying sharing percentages. 
     
     
         13 . The method of  claim 11 , wherein the step of providing multiple offers further comprises providing three offers with varying sharing percentages and advancement amounts. 
     
     
         14 . The method of  claim 11 , wherein the step of providing multiple offers further comprises providing three offers with varying advance amounts and presenting the offers in a user interface that includes a drop-down menu. 
     
     
         15 . The method of  claim 7 , wherein as payments are collected on the debt instruments in the portfolio, funds are accumulated to meet a reserve value calculated to be a percentage of the total amount of advanced funds represented by the debt instruments in the portfolio and further comprising the steps of:
 at the end of a payment cycle, recalculating the reserve value;   if the funds in the reserve exceed the new reserve value, distributing those funds in excess of the new reserve value; and   if the funds in the reserve do not exceed the new reserve value, continue collecting payments for the next payment cycle.   
     
     
         16 . A method for providing a financing service, the method comprising the steps of:
 receiving information related to a financing transaction, the information including information about the customer's capacity to pay, the collateral and the credit worthiness of the customer;   determining, based on the customer's capacity to pay if an offer is to be made to the customer; if an offer is to be made to the dealer, providing multiple offers for financing the transaction with each offer including an advancement amount and a sharing percentage of future payments and each offer is based at least in part on at least a portion of the information received;   receiving an offer selection; incorporating the financed transaction into a portfolio of transactions, the portfolio including a maximum value and tolling that value by the value of the financed transaction; and   closing the portfolio when a plurality of financial transactions meet the value of the portfolio   
     
     
         17 . The method of  claim 16 , wherein the step of receiving information about the credit worthiness of the customer further comprises calculating a credit score for the customer using a proprietary algorithm and information from a credit report generated by a credit bureau. 
     
     
         18 . The method of  claim 17 , wherein the step of providing multiple offers further comprises providing three offers with varying sharing percentages and advancement amounts. 
     
     
         19 . The method of  claim 18 , wherein as payments are collected on the financial transactions in the portfolio, funds are accumulated to meet a reserve value calculated to be a percentage of the total amount of advanced funds represented by the financial transactions in the portfolio and further comprising the steps of:
 at the end of a payment cycle, recalculating the reserve value; if the funds in the reserve exceed the new reserve value, distributing those funds in excess of the new reserve value and accumulating future payments received in; and   if the funds in the reserve do not exceed the new reserve value, continue collecting payments for the next payment cycle.