System and Method for Varying Electronic Settlements Between Buyers and Suppliers with Dynamic Discount Terms
A method of making payment. A request is received to effect payment between a buyer and a seller for a transaction having established terms. The terms include a payment amount and a settlement date. Messages are exchanged between the buyer and the seller that include an offer and acceptance of new terms for payment at other than the established terms. The new terms include an adjusted amount of payment to be made at a particular time after an event associated with the transaction. An electronic notification that the event has occurred is received, and the after the notification, payment between the buyer and seller is effected under the new terms.
1 . A system for providing supply chain financing, comprising:
a communications network;
one or more computers, each comprising at least a computer processor, communicatively coupled to the communications network, configured to:
negotiate one or more payment terms between a buyer, a seller, and a financial institution, such that the negotiated payment terms comprise a discount proposal option to present to at least one of the seller or the buyer from the financial institution, the discount proposal option comprising a discount payment amount in exchange for payment in response to a trigger event;
receive at least one invoice from the seller,
validate the at least one invoice based on predetermined rules;
receive a buyer's payment in accordance with the payment terms, wherein the buyer's payment is received by the financial institution; and
arrange a seller's payment in accordance with the payment terms based on the trigger event, wherein the seller's payment is made by the financial institution.
2 . The system of claim 1 wherein negotiate further comprises making modifications to the terms of the discount proposal and receiving one or more counter-discount proposals.
3 . The system of claim 1 wherein the at least one discount proposal comprises different schemes for arranging early or immediate payment.
4 . The system of claim 1 further wherein the payment is made at a discounted amount to account for a time value of money in having the payment made at an earlier timer.
5 . The system of claim 1 in which the one or more computers are further configured to provide requests for offers of new sets of terms to the seller.