SYSTEM, METHOD, AND COMPUTER READABLE STORAGE MEDIUM TO DETERMINE AND ACCEPT DYNAMIC PAYMENTS IN AN OPEN NETWORK
A method, system, and computer readable storage to enable a user to apply for a loan with a dynamic repayment structure. Instead of periodic payments being fixed, the payments can be variable based on a collection rate. The collection rate is determined from historical financial data for the user. For example, the collection rate can be a fixed percentage of all profit for each month. In this manner, the user's monthly payments are more commensurate with their monthly cash flow thereby reducing the default rate.
1 . An apparatus, comprising:
an internet connection;
a server connected to the internet connection, the server configured to read computer readable instructions stored on a non-transitory computer readable storage medium, the computer readable instructions programmed to cause performance of the following operations:
receive an application for a loan of cash funds from a user;
retrieve financial transaction historical data of the user; and
compute a collection rate from the financial transaction historical data;
issue the loan from a cash provider to the user which initiates an electronic transfer of funds to a bank account of the user, the loan having a repayment schedule for a repayment period,
wherein the repayment schedule utilizes a collection rate applied to a net profit for each periodic payment during the repayment period.
2 . The apparatus as recited in claim 1 , wherein the instructions are further programmed such that the repayment period comprises at least one checkpoint upon which a total amount repaid to the cash provider is compared to a respective threshold for each checkpoint and if the total mount repaid to the cash provider is not greater than the respective threshold then collect a catch-up payment from the user.
3 . The apparatus as recited in claim 2 , wherein the instructions are further programmed such that the threshold is computed as a percentage of an expected collection total.
4 . The apparatus as recited in claim 2 , wherein the instructions are further programmed such that the catch-up payment is automatically transferred out of the bank account of the user to a bank account owned by the cash provider.
5 . The apparatus as recited in claim 1 , wherein the instructions are further programmed such that a repayment amount of the loan is an amount of the loan plus a loan fee.
6 . The apparatus as recited in claim 1 , wherein the instructions are further programmed such that the financial transaction historical data comprises transactions from the bank account of the user.
7 . The apparatus as recited in claim 1 , wherein the instructions are further programmed such that the financial transaction historical data comprises transactions form a plurality of financial accounts of the user, the financial accounts being at different financial institutions unaffiliated with the cash provider.
8 . The apparatus as recited in claim 7 , wherein the instructions are further programmed such that the plurality of financial accounts of the user comprise bank accounts and credit card accounts.
9 . The apparatus as recited in claim 1 , wherein the instructions are further programmed such that the collection rate is fixed throughout the repayment period.
10 . The apparatus as recited in claim 1 , wherein the instructions are further programmed such that the collection rate varies for different payment periods throughout the repayment period.
11 . A method, comprising:
executing computer readable instructions on a server, the computer readable instructions causing the server to perform:
receiving an application for a loan of cash funds from a user;
retrieving financial transaction historical data of the user; and
computing a collection rate from the financial transaction historical data;
issuing the loan from a cash provider to the user which initiates an electronic transfer of funds to a bank account of the user, the loan having a repayment schedule for a repayment period,
wherein the repayment schedule utilizes a collection rate applied to a net profit for each periodic payment during the repayment period.
12 . The method as recited in claim 11 , wherein the repayment period comprises at least one checkpoint, reaching a particular checkpoint, determining that a total amount repaid to the cash provider is lower than a respective threshold for the particular checkpoint, and in response to the determining collecting a catch-up payment from the user.
13 . The method as recited in claim 12 , wherein the threshold is computed as a percentage of an expected collection total.
14 . The method as recited in claim 12 , further comprising automatically transferring the catch-up payment out of the bank account of the user to a bank account owned by the cash provider.
15 . The method as recited in claim 11 , wherein a repayment amount of the loan is an amount of the loan plus a loan fee.
16 . The method as recited in claim 11 , wherein the financial transaction historical data comprises transactions from the bank account of the user.
17 . The method as recited in claim 11 , wherein the financial transaction historical data comprises transactions form a plurality of financial accounts of the user, wherein the plurality of financial accounts of the user are at a plurality of different financial institutions which are unaffiliated with the cash provider.
18 . The method as recited in claim 17 , wherein the plurality of financial accounts of the user comprise bank accounts and credit card accounts.
19 . The method as recited in claim 11 , wherein the collection rate is fixed throughout the repayment period.
20 . The method as recited in claim 11 , wherein the collection rate varies for different payment periods throughout the repayment period.
21 . An apparatus, comprising:
an internet connection;
a server connected to the internet connection, the server configured to read computer readable instructions stored on a non-transitory computer readable storage medium, the computer readable instructions programmed to cause performance of the following operations:
retrieve real-time financial transaction data of a user comprising both inflows and outflows;
determine a net cash flow based on the inflows and outflows;
determine a repayment amount utilizing the net cash flow and a collection rate; and
automatically collect the repayment amount from an account associated with the user.
22 . The apparatus as recited in claim 21 , wherein the instructions are further programmed such that the collection rate is determined from financial transaction historical data.
23 . The apparatus as recited in claim 22 , wherein the instructions are further programmed such that the financial transaction historical data comprises cash inflows and cash outflows.
24 . The apparatus as recited in claim 21 , wherein the instructions are further programmed such that the net cash flow is determined for a period of time comprising one of an immediate preceding day from a present time, an immediate preceding week from a present time, an immediate preceding month from a present time.
25 . The apparatus as recited in claim 21 , wherein the instructions are further programmed such that the automatically collect the repayment amount happens immediately.
26 . The apparatus as recited in claim 21 , wherein the instructions are further programmed such that the real-time financial transaction data of a user that are retrieved are retrieved from a plurality of different financial institutions which are not affiliated with a company operating the server.