Supply chain finance system
In an electronic supply chain finance system, a method of enabling a supplier to obtain funds includes receiving information from a buyer defining a payment obligation, receiving an offer to sell the payment obligation, and creating an electronic negotiable instrument on behalf of the buyer as obligor, to the supplier as payee, having a payable date based on a maturity date of the payment obligation and a payment value based on a payment amount of the payment obligation.
1. An electronic supply chain finance system utilized by a buyer, a supplier that provides at least one of goods and services to the buyer and a financial institution, each of which accesses the system through a computer network interface, comprising:
a non-transitory computer-readable medium containing program instructions;
a processor in operative communication with the computer-readable medium and including hardware or software based logic to execute the program instructions to implement a method comprising multiple performances of the steps of
receiving information from the buyer via an encrypted transmission defining a payment obligation from the buyer to the supplier,
presenting the payment obligation to the supplier,
receiving from the supplier an offer to sell the payment obligation,
presenting the offer to a first financial institution,
receiving an acceptance of the offer from the first financial institution,
creating a negotiable instrument as a first electronic record, on behalf of the buyer as obligor and to the supplier as obligee, wherein the first electronic record stores
an identification of the supplier as obligee,
an identification of a financial institution maintaining an account upon which the buyer may draw funds,
a payable date based on a maturity date of the payment obligation,
a payment value based on a payment amount of the payment obligation,
an electronic signature on behalf of the buyer, and
an identifier,
upon receipt of acceptance of the offer by the first financial institution, storing in the first electronic record an electronic endorsement of the negotiable instrument on behalf of the supplier in favor of the first financial institution as payee in effecting a trade between the supplier and the first financial institution prior to the maturity date that is based on the offer and the acceptance, and
applying a function to data of the first electronic record that produces output data that varies with variations in the first electronic record data, and storing the output data separately from the first electronic record in memory,
wherein each said performance, being for a respective said payment obligation, respective said supplier, respective said buyer, and respective said first financial institution, comprises a respective set of steps of receiving information, presenting the payment obligation, receiving an offer to sell, presenting the offer, receiving an acceptance, creating a negotiable instrument as a respective said first electronic record, storing an electronic endorsement in the first electronic record, applying a function, and storing the output data separately, and
wherein each said identifier is unique among said identifiers stored in a plurality of said first electronic records created by the multiple performances of the creating step by the processor,
wherein the method also comprises the step of creating a plurality of second electronic records, wherein each second electronic record replicates the supplier identification, financial institution identification, payable date, payment value, electronic signature, and identifier of a respective said first electronic record of the plurality of first electronic records; and
a switch operatively disposed between parties remote from the system through the Internet and the pluralities of first electronic records and second electronic records that controls access by the parties to the pluralities of first electronic records and second electronic records so that said access is to one but not both of the plurality of first electronic records and the plurality of second electronic records.
2. The system as in claim 1 , wherein for each performance of the multiple performances, the payable date is the maturity date.
3. The system as in claim 1 , wherein, for each performance of the multiple performances, upon receipt of the information from the buyer defining the payment obligation, the payment obligation is irrevocable by the buyer.
4. The system as in claim 1 , wherein for each performance of the multiple performances, the sell offer has a discounted value and a payment date earlier than the maturity date.
5. The system as in claim 1 , wherein for each performance of the multiple performances, the negotiable instrument is a time draft, on behalf of the buyer as drawer, to the supplier as payee, and drawn on an account owned or controlled by the buyer.
6. The system as in claim 1 , wherein for each performance of the multiple performances, the method implemented by the processor comprises the step of, after creation of the negotiable instrument and receipt of the acceptance, transferring to the supplier an amount of funds determined by terms of the offer.
7. The system as in claim 1 , wherein for each performance of the multiple performances, the negotiable instrument creating step implemented by the processor comprises associating the negotiable instrument with an encrypted unique identifier.
8. The system as in claim 1 , wherein, for each performance of the multiple performances,
the payment obligation defined by the information received at the first receiving step corresponds to a transaction in which the supplier provides the at least one of goods and services to the buyer, and
the negotiable instrument substitutes for and extinguishes all other obligations of the buyer to pay the supplier for the at least one of goods and services from the transaction.
9. The system as in claim 8 , wherein for each performance of the multiple performances, the method comprises, upon receipt of the acceptance and endorsement of the negotiable instrument, effecting transfer to the supplier from the first financial institution of an amount of funds determined by terms of the offer.
10. The system as in claim 8 , wherein, for each performance of the multiple performances, the payment obligation comprises an account payable from the buyer to the supplier.
11. The system as in claim 8 , wherein, for each performance of the multiple performances,
the payment obligation arises upon receipt of the information from the buyer, and
pursuant to agreement by the buyer the payment obligation is irrevocable by the buyer.
12. The system as in claim 1 , wherein, for each performance of the multiple performances,
the payment obligation defined by the information received at the first receiving step corresponds to a transaction in which the supplier provides the at least one of goods and services to the buyer, and
the processor is adapted to execute the program instructions to implement the method comprising the further step of
upon endorsement of the negotiable instrument, effecting transfer to the supplier from the first financial institution of an amount of funds determined by terms of the offer.
13. The system as in claim 12 , wherein for each performance of the multiple performances,
the payment obligation arises upon receipt of the information from the buyer, and
pursuant to agreement by the buyer the payment obligation is irrevocable by the buyer.
14. A system for creating and storing electronic negotiable instruments, said system comprising:
a non-transitory computer-readable medium containing program instructions;
a processor in operative communication with the computer-readable medium and including hardware or software based logic to execute the program instructions to implement a method comprising multiple performances of the steps of
creating a negotiable instrument as a first electronic record, wherein the record stores
an identification of an obligee of the negotiable instrument,
an identification of a financial institution maintaining an account upon which an obligor of the negotiable instrument may draw funds,
a payable date,
an electronic signature on behalf of the obligor, and
an identifier,
applying a function to data of the first electronic record that produces output data that varies with variations in the first electronic record data, and
storing the output data separately from the first electronic record in memory,
wherein each said performance, being for a respective said obligor and respective said obligee, comprises a respective set of said steps of creating a negotiable instrument as a first electronic record, applying a function, and storing the output data separately, and
wherein each said identifier is unique among said identifiers stored in a plurality of said first electronic records created by the multiple performances of the creating step by the processor,
wherein the method also comprises the step of creating a plurality of second electronic records, wherein each second electronic record replicates the obligee identification, financial institution identification, payable date, electronic signature, and identifier of a respective said first electronic record of the plurality of first electronic records; and
a switch operatively disposed between parties remote from the system through the Internet and the pluralities of first electronic records and second electronic records that controls access by the parties to the pluralities of first electronic records and second electronic records so that said access is to one but not both of the plurality of first electronic records and the plurality of second electronic records.