SYSTEMS FOR AND METHODS OF SECURITIZING ASSET-BACKED SUPPLIER REBATE CASH FLOWS DERIVED FROM PROCUREMENT EXPENDITURES

摘要

Prospective variable early-payment rebates under a purchase agreement are expressed as income streams to a buyer through use of a rebate calculation process, and these flows are monetized and secured. The rebates are based on contractual obligations between a buyer and a seller and are "performance based" in that the earlier a buyer pays off its account with a supplier, the larger the rebate. These monetized rebates form a new asset class sold like any other financial instrument. The buyer, based on predictable cash outflows, receives income from these future rebates sooner, allowing it to fund projects. A computer system determines the amount of the rebates, rates them based on the likelihood they will be received, and determines their current value. Investors purchase these instruments, in the form of bonds or notes, and receive payment in principle and interest. A third-party issues financial instruments, secured by the rebates.