Patent ID: 6012925
Filing Date: 2000-01-11
Classification: G09B

Abstract:
A method of providing financial guarantees against monetary loss to a seller of products, comprising:(a) obtaining a probability and magnitude of losses that can be incurred in a sale of said product from a compilation and analysis of past cost required to make and sell the product and sale data from the sale of the product; (b) issuing a guarantee to said seller prior to the sale of said product to pay a settlement to said seller in an event that said seller incurs an actual loss at the sale of said product;(c) obtaining a value of said settlement from said analysis of data; anc(d) setting the settlement value from said analysis of a fee to be paid for said guarantee prior to the sale of said product by said seller for said guarantee, wherein said settlement is funded solely from a plurality of fees paid by a plurality of sellers; wherein said fee is determined as a percentage of a break even sale price of said product.