Patent Publication Number: US-2013231962-A1

Title: System and method for financial interactive management

Description:
FIELD 
     The embodiments hereby disclosed relate generally to a system for financial management, and a method to operate the same, and more specifically, a system for financial interactive management used by parties in a supply chain, and a method to operate the same. 
     BACKGROUND 
     A supply chain is widely adopted in currently marketplace to move a product from supplier to customer. Depending on the sophistication of the product manufacturing process, several parties including buyers and suppliers may be involved in a supply chain for the procurement of certain goods or products. Usually only one supplier (the top level supplier) contracts with a buyer to obtain a purchase order for certain goods or products. Subsequently the top level supplier usually contracts with another supplier or several suppliers for part of or the entire fulfillment of the purchase order. 
     Financial services providers (financial institutions) in general provide financings (loans) to their clients in the marketplace including buyers and suppliers in a supply chain, to facilitate working capital flows within the supply chain. A Supplier in the supplier chain in general highly relies on financings provided by its individual financial institutions to get access to working capital in conducting its operations and productions. A smaller supplier, often a lower level supplier, may especially rely on financing for its operations and productions when attempting to accept and fulfill a substantial part of a purchase order with a high purchase price, because the smaller supplier may not be able to generate enough cash flow in its ordinary business to compensate its production overhead in the supply chain transaction. Financial service providers, on the hand, are highly regulated and look for their maximization of return of capital while controlling their overall asset riskiness below the thresholds set by laws and regulations. 
     Insurance providers in general provide insurances to their clients in the marketplace including buyers and suppliers in a supply chain to hedge risks associated with the product procurement processes. A supplier in the supplier chain may be required to provide a proof of insurance when applying for financings from its financial institution if the overall transaction is considered risky by the financial institution. A smaller supplier, often a lower level supplier may always be required to provide proofs of insurance when applying for financings from its financial institution because the smaller supplier may have a higher level of riskiness and a lower level of creditworthiness. At the same time the insurance provider may require higher insurance premiums from the smaller supplier because the smaller supplier may have a higher level of riskiness and a lower level of creditworthiness. The insurance premiums may in turn build into the smaller supplier&#39;s operation overhead in the supply chain transaction, raising its costs and lowering its returns in doing businesses in the supply chain. Insurance providers, on the hand, are highly regulated and look for their maximization of return of reserves while controlling their overall asset riskiness below the thresholds set by laws and regulations. 
     In a supply chain in general there is substantial amount of information generated and circulated among relevant parties. A massive amount of information containing obsolete or incorrect information may cause confusions, mistakes and delays in the production process, therefore lowering the efficiency of the supply chain and causing unnecessary costs for the parties in the supply chain. 
     SUMMARY 
     The embodiments hereby disclosed relate generally to a system for financial management, and a method to operate the same, and more specifically, a system for financial interactive management used by users in a supply chain, and a method to operate the same. More specifically, some embodiments hereby disclosed relate to a system for loan approvals for applicants in a supply chain, and a method to operate the same. Some embodiment hereby disclosed relate to a system for insurance approvals for applicants in a supply chain, and a method to operate the same. Some embodiments hereby disclosed relate to a system for supply chain management for applicants in a supply chain, and a method to operate the same. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
       The following is a brief explanation of embodiments herein using drawings and embodiments: 
         FIG. 1  is a block diagram of a financial interactive management system. 
         FIG. 2  is a block diagram of a loan approval system. 
         FIG. 3  is a flow chart representing the steps of the loan approval system for a loan approval. 
         FIG. 3A  is a flow chart representing the steps of an embodiment of the loan approval system in  FIG. 3 . 
         FIG. 4  is a block diagram of a loan approval and guarantee system. 
         FIG. 5  is a flow chart representing the steps of the loan approval and guarantee system for a guaranteed loan approval. 
         FIG. 5A  is a flow chart representing the steps of an embodiment of the loan approval and guarantee system in  FIG. 5 . 
         FIG. 6  is a block diagram of an insurance underwriting approval system. 
         FIG. 7  is a flow chart representing the steps of the insurance underwriting approval system for an insurance approval. 
         FIG. 7A  is a flow chart representing the steps of an embodiment of the insurance underwriting approval system in  FIG. 7 . 
         FIG. 8  is a block diagram of a supply chain management system. 
         FIG. 9  is a flow chart representing the steps of the supply chain management system for managing a supply chain. 
         FIG. 9A  is a flow chart representing the steps of an embodiment of the supply chain management system in  FIG. 9 . 
     
    
    
     DETAILED DESCRIPTION 
     Embodiments herein disclosed describe a financial interactive management system, and a method to operate the financial interactive management system. 
     As shown in  FIG. 1 , in one embodiment the financial interactive management system  100  has a central processing system  101  which is configured to interact with multiple parties in a supply chain transaction. 
     The central processing system  101  may be configured to interact with several applicants in a supply chain including Applicant A  103 , Applicant B  104 , and Applicant C  105 . In one embodiment the central processing system  101  may interact with applicants&#39; terminal devices  1031 ,  1032 ,  1033 . The applicants&#39; terminal devices may be used for inputting information and for outputting or displaying information for the applicants  103 ,  104 ,  105 . In one embodiment the central processing system  101  may interact with Applicants A, B and C  103 ,  104 ,  105  using a network  110 . In one embodiment the network  110  may be a wired or a wireless network, or any network compatible for the purposes of interactions and communications. 
     In one embodiment the central processing system  101  may also be configured to interact with a buyer  102 . In one embodiment the central processing system  101  may interact with the buyer  102  using the network  110 . 
     In one embodiment the central processing system  101  may also be configured to interact with a loan issuing agency  106 , e.g. a bank. In one embodiment the central processing system  101  may interact with the loan issuing agency  106  using the network  110 . 
     In one embodiment the central processing system  101  may also be configured to interact with an insurance provider  107 , e.g. an insurance company. In one embodiment the central processing system  101  may interact with the insurance provider  107  using the network  110 . 
     In one embodiment the central processing system  101  may also be configured to interact with a supply chain manager  108 , e.g. an e-commerce portal operator. In one embodiment the central processing system  101  may interact with the supply chain manager  108  using the network  110 . 
     The central processing system  101  may further include a financial interactive management system database  111 . In one embodiment the financial interactive management system database  111  may use standardized or customarily data structures and database management systems to better interact with the central processing system  101 . The financial interactive management system database  111  may store data and information related to the operation of the financial interactive management system  100  and its components on traditional or specialized storage medium to perform its data storage functions. The central processing system  101  may access and update the data in the financial interactive management system database  111 . In one embodiment the access may be made over the internet using data encryption technologies to secure the data transmission. 
     Several embodiments of the financial interactive management system are further described and illustrated by drawings herein included. 
     Loan Approval System 
     As shown in  FIG. 2 , a loan approval system  200  is provided to produce a loan approval for distributing working capital to a supplier in a supply chain. The loan approval system  200  is an embodiment of the financial interactive management system  100 , where the central processing system  101  interacts with applicants  103  in a supply chain, and with the loan issuing agency  106 . The loan approval system  200  may be utilized by various financial institutions including banks, to provide profit margin financings to suppliers to operate in a supply chain. 
     In one embodiment the loan approval system  200  may include a loan issuing agency  201 , one or several applicants  202  who is or are applying for its or their respective loans from the loan issuing agency  201 , a central processing system of the loan issuing agency  203 , an applicant terminal device  204  used by each applicant  202 , relevant information for the determination of a loan approval  205 , a network  206  between the loan issuing agency  201  and the applicants  202 , one or several databases  207  containing relevant information related to the applicant(s). 
     As further illustrated in  FIG. 3 , in one embodiment several steps are provided to operate the loan approval system  200  which may include: 
     S 210 . the applicant  202  requests the loan approval from the loan issuing agency  201  and inputs the relevant information for the determination of the loan approval  205  into its applicant terminal device  204 ; 
     S 220 . following step S 210 , the central processing system of the loan issuing agency  203  receives the relevant information for the determination of the loan approval  205  for the applicant  202  from the network  206 , checks and verifies the information at the database(es)  207  containing information related to the applicants  202 , calculates on the applicant&#39;s  202  financial data including its gross profit margin and the supply chain information if applicable to the applicant  202 , and checks on the loan issuing agency  201 &#39;s loan limit for the applicant  202 ; 
     S 221 . following step S 220 , the central processing system of the loan issuing agency  203  determines the outcome of the loan approval; 
     S 231 . following step S 221 , if the central processing system of the loan issuing agency  203  determines the outcome of the loan approval is negative, the central processing system of the loan issuing agency  203  sends a decline message to decline the loan approval to the applicant  202  using the network  206 ; 
     S 232 . following step S 221 , if the central processing system of the loan issuing agency  203  determines the outcome of the loan approval is positive, the central processing system of the loan issuing agency  203  produces a loan approval report  208  for the applicant  202 , and sends a pass message of a confirmation to approve the loan approval to the applicant  202  using the network  206 ; 
     S 242 . following step S 232 , the loan issuing agency  201  signs a loan agreement  209  with the applicant  202  whose loan approval receives a pass; and 
     S 252 . following step S 242 , the loan issuing agency  201  distributes working capital to the account of the applicant  202  whose loan approval receives a pass. 
     In one embodiment the loan issuing agency  201  is a bank issuing credit to its various customers pursuant to their loan approval applications. 
     In another embodiment the several applicants  202  are suppliers in a supplier chain, where a top level supplier receives a purchase order from a buyer to make a purchase from the top level supplier together with a letter of credit from the buyer or the buyer&#39;s financial institution for the consideration of the purchase order. Lower level suppliers may contract with the top level supplier for their respective shares in the fulfillment of the purchase order from the buyer. Each applicant  202  applies for its loan approval from the loan issuing agency  201 . 
     In another embodiment, the central processing system for the loan issuing agency  203  is a central processing system of the bank. The central processing system of the loan issuing agency may be any computer with below system configurations, or with any system configurations suitable for its intended purposes in the loan approval system:
         browser: Microsoft Internet Explorer 7 or newer, Firefox 3.x or newer, Safari on iPad iOS version 5.x or newer, Google Chrome;   operating System: Microsoft Windows XP SP3 or newer;   RAM (random access memory): 2 GB;   hard drive: 10 GB free;   processor: Pentium dual core equivalent or equivalent AMD CPU.       

     The loan issuing agency  201  may need a login identification and a password to get access to the central processing system of the loan issuing agency  203  to better secure the processing and transmission of information. 
     In another embodiment the applicant terminal  204  used by each applicant  202  is a supplier terminal device. In one embodiment the applicant terminal device  204  may be a computer when the relevant information for the determination of the loan approval  205  is in an analog or digital or other computer readable format storable on a data storage medium, and it may also be a printer or other devices which are capable to record and to reproduce relevant information for the determination of a loan approval  205  on paper copies or by other tangible means. The applicant  202  may need an individual login identification and a password to get access to the applicant terminal device  204  to better secure the input and transmission of the information. 
     In one embodiment the relevant information for the determination of the loan approval  205  may include the applicant&#39;s  202  information needed for the determination of the loan approval. In one embodiment when the applicants  202  are suppliers in a supply chain, the relevant information for the determination of the loan approval  205  may include the suppliers&#39; company information, a copy of a buyer&#39;s purchase order to make a purchase from the suppliers in the supply chain, information about the supply chain including the suppliers&#39; gross profit margins, the buyer&#39;s letter of credit issued by the buyer or its credit agency to a top level supplier in the supply chain, and a proof of account receivable insurances for the suppliers, etc. 
     Preferably the applicant&#39;s  202  gross profit margin in the supply chain is included in the relevant information for the determination of the loan approval  205 , because the applicant&#39;s  202  gross profit margin may be used to determine the maximum amount of loan required for the applicant  202  to operate in a supply chain transaction utilizing the loan approval system  200 . The use of the applicant&#39;s  202  gross profit margin in the loan approval system  200  may benefit both the loan issuing agency  201  and the applicant  202 , and will be further explained below. 
     The relevant information for the determination of the loan approval  205  may be in an electronic, computer readable format storable on a data storage medium, and it may also be in some other formats including paper copies or other tangible means. It is to be understood that when the relevant information for the determination of the loan approval  205  is in a tangible format, the information contained therein may be scanned and transformed into a computer readable and processable format and may be thereafter received by the central processing system of the loan issuing agency  203 . 
     The network  206  between the loan issuing agency and the applicants may be either a wired or a wireless network, or any combination or configuration of the two, or via a form of network capable of information compiling and decompiling by the central processing system of the loan issuing agency  203  and the applicant terminal device(s)  204 , including wide area network, local area network, digital subscriber line, etc. The network between the loan issuing agency  201  and the applicants  202  may use security socket layer or other encryption technologies to better secure the transmission of information between the loan issuing agency  201  and the applicant(s)  202 . It is to be understood that notwithstanding the above embodiments, the network  206  may also be a logistics network employing a carrier or several carriers including first party carrier(s) as part of the applicant  202 &#39;s logistic system making personal delivery of the relevant information for determination of the loan approval  205 , or third party carries or courier service providers to make the same deliveries. 
     In one embodiment the database(es)  207  containing the relevant information related to the applicants may include the financial interactive management system database  111 . The database(es)  207  may also include database(es) publicly accessible and/or database(es) held privately and accessible by subscriptions, and the databases containing the applicant&#39;s  202  financial information, credit histories, and other relevant information potentially useful for the determination of the loan approval(s). 
     Yet in another embodiment as illustrated in  FIG. 3A , the steps to operate the loan approval system may be in the following where the loan issuing agency  201  is a bank, the applicant  202  is a supplier in a supply chain, the central processing system of the loan issuing agency  203  is a bank&#39;s central computer, the applicant terminal device  204  is a supplier terminal device, and the network  206  is the internet: 
     S 210   a . the supplier from a supply chain requests a loan approval from the bank and inputs relevant information for the determination of the loan approval into the loan approval system  200  using the supplier terminal device, e.g. a computer configured to carry out the intended purposes in the loan approval system. The supplier may need an individual login identification and a password to get access to the supplier terminal device to better secure the input and transmission of the relevant information for the determination of the loan approval. 
     S 220   a . following step S 210   a , the bank&#39;s central computer receives the relevant information input for the determination of the loan approval from the internet. The bank&#39;s central computer checks and verifies the relevant information at database(es) containing information related to the supplier including the financial interactive management system database  111  and/or other relevant databases, calculates on the supplier&#39;s financial data including the supplier&#39;s gross profit margin and the supply chain information, and checks on bank&#39;s loan limit for the supplier who is requesting a loan approval. 
     In one embodiment the bank&#39;s central computer may interact with the financial interactive management system database  111  to access certain information pertinent to the supplier to check and verify whether the relevant information input by the supplier is correct and whether any fraud or default may occur. The bank&#39;s central computer may also access to other public or private databases to double check the relevant information input by the supplier to further verify and reassure the authentication and accuracy of the relevant information input by the supplier. 
     In one embodiment the bank&#39;s central computer may use the information received from the supplier and other relevant information from the financial interactive management system database  111  and other relevant databases to calculate on the supplier&#39;s financial data including the supply chain information, in deciding the amount of loan to be approved for the supplier. The amount of loan to be approved may be limited by the supplier&#39;s gross profit margin the supply chain. 
     In one embodiment the bank&#39;s central computer may recheck on the bank&#39;s latest loan limit for the supplier, based on the applicable banking regulations, the bank&#39;s loan policies, the bank&#39;s capital and liquidity, etc., to reconfirm that the amount of loan to be approved would not exceed the bank&#39;s latest loan limit for the supplier. 
     S 221   a . following step S 220   a , the bank&#39;s central computer determines the outcome of the loan approval; 
     S 231   a . following step S 221   a , if the bank&#39;s central computer determines the outcome of the loan approval is negative, the bank&#39;s central computer sends a decline message to decline the loan approval to the supplier using the internet. 
     In one embodiment the decline message may be sent using the internet electronically by an automated messaging system from the bank&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In other embodiments the decline message may also be generated by the bank&#39;s central computer, printed as a paper copy and sent to the supplier by a logistic network e.g. by mail or via couriers. 
     S 232   a . following step S 221   a , if the bank&#39;s central computer determines the outcome of the loan approval is positive (i.e. a pass), the bank&#39;s central computer produces a loan approval report  208  for the supplier, and sends a pass message of a confirmation to approve the loan approval  208  to the supplier using the internet. 
     The loan approval report  208  may include an amount of loan approved and to be issued to the supplier and an interest rate of the loan approved and to be issued to the supplier. In another embodiment, the amount of the loan approved and to be issued is limited to the gross profit margin of the supplier in the supply chain. The amount of the loan approved and to be issued may be further limited by other relevant information including the supplier&#39;s credit history, the supplier&#39;s other information indicating its riskiness, and certain applicable banking regulations and other laws applicable to the transaction. 
     The pass message may be sent electronically using the internet by an automated messaging system from the bank&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In other embodiments the pass message may also be generated by the bank&#39;s central computer, printed as a paper copy and sent to the supplier by a logistic network, e.g. by mail or via couriers. 
     S 242   a . following step S 232   a , the bank signs a loan agreement  209  with the supplier whose loan approval receives a pass. 
     In one embodiment the loan agreement  209  may be in the form of a standardized loan contract. The loan agreement  209  may be in an electronic, computer readable and processable format. In one embodiment the loan agreement  209  may be sent electronically by an automated electronic contract signing system from the bank&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In one embodiment the supplier whose loan approval receives a pass may sign the loan agreement  209  electronically with a proper identification verification process, i.e. e-signing process. In one embodiment the signed loan agreement  209  may be thereafter stored in the financial interactive management system database  111 , or other databases for further references. It is to be understood that, notwithstanding the above embodiment, the loan agreement  209  may also be reproduced in counterparts on a tangible medium including paper, one of which may be send to the supplier whose loan approval receives a pass by a logistic network, e.g. by mail or via couriers for the supplier&#39;s signature. The loan agreement  209  including all the counterparts may thereafter be scanned and stored electronically in the financial interactive management system database  111 , or other databases for further references. Paper or other tangible copies of the loan agreement  209  may also be stored in their original format for further references. 
     S 252   a . following step S 242   a , the bank distributes working capital to the account of the supplier whose loan approval receives a pass. 
     The amount of working capital distributed to the account of the supplier whose loan approval receives a pass may equal to the amount of loan approved and to be issued to the supplier in the loan approval report  208  and may equal to the amount of loan allowed in the loan agreement  209  between the bank and the supplier whose loan approval receives a pass. In another embodiment, the amount of working capital distributed to the account of the supplier whose loan approval receives a pass is limited to the gross profit margin of the supplier in the supply chain. 
     Subsequent to above steps, the supplier may repay the bank the amounts of working capital distributed by the bank to the supplier&#39;s account. In one embodiment, the amount of working capital repaid by the supplier may be limited to the gross profit margin of the supplier in the supply chain. 
     The benefit of utilizing the loan approval system  200  herein described may be explained using an embodiment illustrated in the following Chart 1. 
     
       
         
           
               
             
               
                 CHART 1 
               
               
                   
               
             
            
               
                 bank loan exposures using loan approval  
               
               
                 system and using traditional loan system 
               
               
                 (financing loan repayment date for each supplier 
               
               
                 is longer than processing time of each supplier) 
               
            
           
           
               
               
               
               
               
               
            
               
                   
                   
                   
                   
                 Repayment  
                   
               
               
                   
                 Gross  
                   
                   
                 of  
                 Total  
               
               
                   
                 Margin 
                   
                   
                 financing  
                 Tradi-  
               
               
                   
                 Financing  
                   
                   
                 before  
                 tional 
               
               
                   
                 Using  
                   
                   
                 receiving 
                 Loan 
               
               
                   
                 Loan  
                   
                 Account 
                 payment  
                 required  
               
               
                 Contract  
                 Approval 
                 Account 
                 Payable 
                 from one  
                 by each  
               
               
                 Chain 
                 System 
                 Receivable 
                 Loan 
                 level above 
                 level 
               
               
                   
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   
                   
                 1,000 K 
                   
                 1,000 K 
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   350 K (35%) 
                 1,000 K 
                   650 K 
                 0 
                 1,000 K 
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   160 K (25%) 
                   650 K 
                   490 K 
                 0 
                   650 K 
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   100 K (20%)  
                   490 K 
                   390 K 
                 0 
                   490 K 
               
               
                 Supplier D 
                   390 K 
                   390 K 
                   
                 0 
                   390 K 
               
               
                 Total 
                 1,000 K 
                   
                 2,530 K 
                 0 
                 3,530 K 
               
               
                   
               
            
           
         
       
     
     In the embodiment illustrated in Chart 1, the loan issuing agency  201  is a bank, and the applicants  202  are several suppliers in a supply chain including Buyer X, and Suppliers A, B, C and D. Supplier A contracts with a Buyer X receiving a purchase order of a purchase price of $1,000,000. Subsequently Supplier A contracts with Supplier B, Supplier B contracts with Supplier C, and Supplier C contracts with Supplier D forming a supply chain in fulfillment of the purchase order. In this embodiment the Buyer X is a buyer with credibility and substantial bargaining power, and Buyer X issues a confirmation letter to Supplier A together with the purchase order confirming the purchase. The confirmation letter subsequently becomes a part of the relevant information for the determination of loan approvals  205  for Suppliers A, B, C and D. The gross profit margins for Suppliers A, B, C and D are 35%, 16%, 10% and 39% respectively. 
     By utilizing the loan approval system  200  herein described, the bank issues loans to Suppliers A, B, C and D matching their respective gross profit margin, assuming all of Supplier&#39;s requests for loan approval receive passes. Consequently the bank issues $350,000 to Supplier A, $160,000 to Supplier B, $100,000 to Supplier C, and $390,000 to Supplier D. The total loan exposure of the bank in the transaction equals to the purchase price in the purchase order, i.e. $1,000,000. 
     In a traditional loan approval system as shown in Chart 1, the bank is required to issue loans equal to the amount of account receivable of each supplier and the amount of the buyer&#39;s purchase price when the financing loan payment date for each supplier is longer than the processing time for each supplier. In the above embodiment, by utilizing the traditional loan approval system when the financing loan payment date for each suppliers is longer than the processing time for each supplier, the bank issues $1,000,000 to Buyer X equal to its purchase price, and issues to Suppliers A, B, C and D amounts of money equal to their respective accounts receivable (i.e. their respective accounts plus their respective gross profit margin). Consequently the bank issues to Suppliers A, B, C and D $1,000,000, $650,000, $490,000 and $390,000 respectively. The bank&#39;s total amount of loan exposure is $3,530,000 when utilizing the traditional loan approval system when the financing loan payment date for each supplier is longer than the processing time for each supplier. 
     
       
         
           
               
             
               
                 CHART 2 
               
               
                   
               
             
            
               
                 bank loan exposures using loan approval  
               
               
                 system and using traditional loan system 
               
               
                 (financing loan repayment date for each supplier  
               
               
                 is shorter than processing time of each supplier) 
               
            
           
           
               
               
               
               
               
               
            
               
                   
                   
                   
                   
                 Repayment  
                   
               
               
                   
                 Gross  
                   
                   
                 of  
                 Total  
               
               
                   
                 Margin 
                   
                   
                 financing  
                 Tradi- 
               
               
                   
                 Financing  
                   
                   
                 before  
                 tional  
               
               
                   
                 Using  
                   
                   
                 receiving 
                 Loan 
               
               
                   
                 Loan  
                   
                 Account 
                 payment  
                 required  
               
               
                 Contract  
                 Approval 
                 Account 
                 Payable 
                 from one  
                 by each  
               
               
                 Chain 
                 System 
                 Receivable 
                 Loan 
                 level above 
                 level 
               
               
                   
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   
                   
                 1,000 K 
                   
                 1,000 K 
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   350 K (35%) 
                 1,000 K 
                   650 K 
                 650 
                 1,650 K 
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   160 K (25%) 
                   650 K 
                   490 K 
                 490 
                 1,140 K 
               
               
                 
                   
                     
                     
                         
                         
                     
                   
                 
                   100 K (20%)  
                   490 K 
                   390 K 
                 390 
                   880 K 
               
               
                 Supplier D 
                   390 K 
                   390 K 
                   
                 0 
                   390 K 
               
               
                 Total 
                 1,000 K 
                   
                 2,530 K 
                 1,530 
                 5,060 K 
               
               
                   
               
            
           
         
       
     
     In another traditional loan approval system as shown in Chart 2, the bank is required to issue loans equal to the amount of the account receivable plus the account payable of each supplier and the amount of the buyer&#39;s purchase price when the financing loan payment date for each supplier is shorter than the processing time for each supplier, because each supplier (excluding the lowest level supplier which does not have account payable) may be required to request account receivable loan from the bank to secure its payment when the payment date is due. In the above embodiment, by utilizing the traditional loan approval system when the financing loan payment date for each suppliers is shorter than the processing time for each supplier, the bank issues $1,000,000 to Buyer X equal to its purchase price, and issues to Suppliers A, B, C and D amounts of money equal to their respective accounts receivable plus their respective accounts payable. Consequently the bank issues loans to Suppliers A, B, C and D in the amount of $1,650,000 ($1,000,000+$650,000), $1,140,000 ($650,000+$490,000), $880,000 ($490,000+$390,000) and $390,000 respectively. The bank&#39;s total amount of loan exposure is $5,060,000 when utilizing the traditional loan approval system when the financing loan payment date for each supplier is shorter than the processing time for each supplier. 
     Comparing the bank&#39;s loan exposures using the loan approval system  200  herein described in this embodiment to the bank&#39;s loan exposures using traditional loan approval system, when using the loan approval system  200  the bank only needs to issue an amount of loan about 1/3.5 (1000/3530) or 1/5.06 (1000/5060) of traditional financing loans, depending on the financing loan payment date relative to the processing time of the supplier. In this embodiment, as the bank only needs to issue the amount of loan equal to 1/3.5 (around 28.57%) or 1/5.06 (around 19.76%) of traditional trade financing loans to all suppliers in a supply chain, the corresponding bank capital reserve required to back up the loans issued in the loan approval system  200  herein described will be only 1/3.5 (around 28.57%) or 1/5.06 (around 19.76%) of traditional trade financing loans. 
     In general capital reserve of a loan issuing agency  201  only generates very low return to the loan issuing agency  201  while the loan issuing agency  201  needs to pay its shareholders an acceptable return on equity (i.e. cost of capital for the loan issuing agency  201 ). Employing less bank capital reserve to serve same amount of applicants and transactions means significant cost saving for the loan issuing agency  201 . In another embodiment the cost of capital for the loan issuing agency  201  is 8% and return on loan issuing agency  201  capital reserve is 1%. The net savings for loan issuing agency  201  in reducing $1,000,000 capital reserve employed will be $70,000, i.e. $1,000,000×(8%−1%). In the same embodiment there is $50 billion of trade financing loans in the loan issuing agency  201 . Utilizing the loan approval system  200  herein described can reduce the loan issuing agency&#39;s  201  trade financing loans to $14.29 billion ($50 billion×28.57%), or $9.88 billion ($50 billion×19.76%), when the loan issuing agency&#39;s  201  portfolio of supply chains have the average gross margin and supplier level is the same as the embodiment described immediately above. In this embodiment Tier 1 capital is required to be 10% of the loan portfolio of the loan issuing agency  201 . Reducing $35.71 billion ($50 billion−$14.29 billion) or $40.12 billion ($50 billion−$9.88 billion) of loan size (while serving the same amount of applicants and same amount of supply chain financing) means annual savings of $250 million ($35.71 billion×10%×7%) or $281 million ($40.12 billion×10%×7%) for the loan issuing agency  201 . 
     When the loan issuing agency  201  saves significant amount in cost of capital in serving same amount of applicants and transactions, the loan issuing agency  201  will be able to provide cheaper financings to the applicant  202 , thereby lowering applicant&#39;s  202  overall business overhead when operating in a supply chain transaction. This will facilitate the loan issuing agency  201  and applicant  202  to engage in more supply chain business transactions because the loan issuing agency&#39;s  201  capital is used more efficiently when the loan approval system  200  herein described is utilized. 
     It is to be understood that this ratios or percentages may vary if the trade financing portfolio of the loan issuing agency  201  has an average supplier level and average gross margin different from the embodiments described herein. Nonetheless utilizing the loan approval system  200  herein described may cause significant cost savings on the loan issuing agency&#39;s  201  capital cost. 
     Loan Approval and Guarantee System 
     As shown in  FIG. 4 , a loan approval and guarantee system  400  is provided to produce a guaranteed loan approval for distributing working capital to a supplier in a supply chain, which may be guaranteed by a guaranteed buyer&#39;s letter of credit or other forms of payment guarantees. The loan approval and guarantee system  400  is an embodiment of the financial interactive management system  100 , where the central processing system  101  interacts with the buyer  102 , with applicants  103 ,  104  and  105  in a supply chain, and with the loan issuing agency  106 . The loan approval and guarantee system  400  may be utilized by various credit issuing entities, including banks to provide secured profit margin financings to several suppliers in a supply chain and to further facilitate the supply chain transaction. 
     In one embodiment the loan approval and guarantee system  400  may include a loan issuing agency  401 , several applicants  4021 ,  4022 ,  4023  in a transaction who are applying for their respective guaranteed loans from the loan issuing agency  401 , a central processing system of the loan issuing agency  403 , an applicant terminal device  404  used by each applicant, relevant information for the determination of a guaranteed loan approval  405  further including a guaranteed letter of credit  4051  issued by the buyer or the buyer&#39;s financial institution, a network between the loan issuing agency  401  and the applicants  4021 ,  4022 ,  4023 , one or several databases  407  containing relevant information related to the applicants  4021 ,  4022 ,  4023 , and several steps to operate the loan approval and guarantee system. In one embodiment the applicants  4021 ,  4022 ,  4023  in the transaction further include a top level applicant  4021  in the transaction who contracts directly with a buyer and who receives the guaranteed letter of credit  4051  from the buyer, and one or more lower level applicants  4022 ,  4023  in the transaction who contract(s) direct with the top level applicant  4021 , or indirectly with the top level applicant  4021  through other lower level applicant(s) in a chain of contracts. 
     As further illustrated in  FIG. 5 , in one embodiment the steps are provided to operate the loan approval and guarantee system which may include: 
     S 410 . the top level applicant  4021  in the transaction requests the guaranteed loan approval from the loan issuing agency  401  and inputs the relevant information for the determination of the guaranteed loan approval  405  into its applicant terminal device  404 ; 
     S 4101 . the lower level applicants  4022  and  4023  in the transaction request the guaranteed loan approval from the loan issuing agency  401  and input the relevant information for the determination of the guaranteed loan approval  405  into its applicant terminal device  404 ; 
     S 411 . the top level applicant  4021  in the transaction transfers from the network  406  the buyer&#39;s guaranteed letter of credit  4051  issued by the buyer or the buyer&#39;s financial institution to the loan issuing agency  401  as a collateral to guarantee the guaranteed loan approvals requested by all applicants  4021 ,  4022 ,  4023  in the transaction; 
     S 420 . following steps S 410 , S 411  and S 4101 , the central processing system of the loan issuing agency  403  receives the relevant information for the determination of the guaranteed loan approval  405  for the applicant from the network  406  including the guaranteed letter of credit  4051  issued by the buyer or the buyer&#39;s financial institution, checks and verifies the relevant information at the database(es)  407  containing information related to each of the applicants  4021 ,  4022 ,  4023 , calculates on each applicant  402 &#39;s financial data including its gross profit margin and the supply chain information, and checks on the loan issuing agency  401 &#39;s loan limit for each applicant  402 ; 
     S 421 . following step S 420 , the central processing system of the loan issuing agency  203  determines the outcome of the guaranteed loan approval; 
     S 431 . following step S 421 , if the central processing system of the loan issuing agency  403  determines the outcome of the guaranteed loan approval is negative, the central processing system of the loan issuing agency  403  sends a decline message to decline the guaranteed loan approval to the applicant  4021 ,  4022 ,  4023  whose guaranteed loan approval receives a decline using the network  406 ; 
     S 432 . following step S 421 , if the central processing system of the loan issuing agency  403  determines the outcome of the guaranteed loan approval is positive (i.e. a pass), the central processing system of the loan issuing agency  403  produces a guaranteed loan approval report  408  for each applicant, and sends pass message of a confirmation to approve the guaranteed loan approval to the applicant  4021 ,  4022 ,  4023  whose guaranteed loan approval receives a pass using the network  406 ; 
     S 442 . following step S 432 , the loan issuing agency  401  signs a guaranteed loan agreement  409  with each applicant  4021 ,  4022 ,  4023  whose guaranteed loan approval receives a pass; and 
     S 452 . following step S 442 , the loan issuing agency  401  distributes working capital to the account of each applicant  4021 ,  4022 ,  4023  whose guaranteed loan approval receives a pass. 
     Embodiments of the loan issuing agency  201  in the loan approval system  200  herein described may be applicable to the loan issuing agency  401  in the loan approval and guarantee system  400 . 
     In one embodiment applicants  4021 ,  4022 ,  4023  in the transaction are suppliers in a supplier chain, where the top level applicant  4021  in the transaction is a top level supplier in the supply chain who receives a purchase order from a buyer to make a purchase from the top level supplier in the supply chain together with a guaranteed letter of credit from the buyer or the buyer&#39;s financial institution for the consideration of the purchase. In the same embodiment lower level applicants  4022 ,  4023  are lower level suppliers in the supply chain who contract directly with the top level supplier in the supply chain for their respective shares or gross profit margins in the fulfillment of the purchase order from the buyer. In another embodiment, a lower level applicant  4023  in the transaction contracts with another lower level applicant  4022  in the transaction, the latter of which contracts with the top level applicant  4021  in the transaction, forming a chain of contracts in fulfillment of the purchase order. Each applicant  4021 ,  4022 ,  4023  applies for its guaranteed loan approval from the loan issuing agency  401 . 
     Embodiments of the central processing system of loan issuing agency  203  in the loan approval system  200  herein described may be applicable to the central processing system of the loan issuing agency  403  in the loan approval and guarantee system  400 . 
     Embodiments of the applicant terminal device  204  in the loan approval system  200  herein described may be applicable to the applicant terminal device  404  in the loan approval and guarantee system  400 . 
     In one embodiment the relevant information for the determination of the guaranteed loan approval  405  in the loan approval and guarantee system  400  may include information which may be used in the loan approval system  200  herein described. The relevant information for the determination of the guaranteed loan approval  405  in the loan approval and guarantee system  400  further includes a guaranteed letter of credit  4051  issued by the buyer or the buyer&#39;s financial institution. In one embodiment the guaranteed letter of credit  4051  issued by the buyer or the buyer&#39;s financial institution may be a confirmed letter of credit issued by the buyer or the buyer&#39;s financial institution when additional confirmation (or guarantee) is added to honor a complying presentation at the request or authorization of the buyer or the buyer&#39;s financial institution. It is to be understood that other forms of payment guarantees may also be used in lieu of the guaranteed letter of credit  4051 , including for example buyer&#39;s deposit to the loan issuing agency  401 , or proofs of account receivable insurances received by applicants  4021 ,  4022 ,  4023 , and any combinations thereof, so long as the form of the payment guarantees may serve the same functions as of the guaranteed letter of credit in the loan approval and guarantee system  400 . 
     Embodiments of the network  206  in the loan approval system  200  herein described may be applicable to the network  406  in the loan approval and guarantee system  400 . 
     Embodiments of one or several databases  207  containing relevant information related to the applicant(s)  202  in the loan approval system  200  herein described may be applicable to one or several databases  407  containing relevant information related to the applicants  4021 ,  4022 ,  4023  in the loan approval and guarantee system  400 . 
     Yet in another embodiment illustrated in  FIG. 5A , the several steps to operate the loan approval and guarantee system  400  may be in the following steps where the loan issuing agency  401  is a bank, the applicants  4021 ,  4022 ,  4023  in the transaction are suppliers in a supply chain where the top level applicant  4021  in the transaction is a top level supplier in the supply chain, Supplier A, who receives a purchase order from a buyer to make a purchase from the top level supplier in the supply chain together with a guaranteed letter of credit  4051  from the buyer or the buyer&#39;s financial institution for the consideration of the purchase, and lower level applicants  4022 ,  4023  are two lower level suppliers in the supply chain, Suppliers B and C, the former of which contracts directly with Supplier A for its share or gross profit margin in the fulfillment of the purchase order from the buyer, and the latter of which contracts indirectly with Supplier A by contacting with Supplier B for its share or gross profit margin in the fulfillment of the purchase order from the buyer, the central processing system of the loan issuing agency  403  is a bank&#39;s central computer, the applicant terminal devices  404  are supplier terminal devices, the guaranteed letter of credit  4051  is a confirmed letter of credit issued by the buyer&#39;s financial institution with additional confirmation, and the network  406  is the internet: 
     S 410   a . Supplier A requests its guaranteed loan approval from the bank and inputs its relevant information for the determination of the guaranteed loan approval into its supplier terminal device, e.g. a computer configured to carry out the intended purposes in the loan approval and guarantee system. Supplier A may need an individual login identification and a password to get access to the applicant terminal device to better secure the input and transmission of the relevant information for the determination of the guaranteed loan approval  405 ; 
     S 4101   a . lower level Suppliers B and C requests their guaranteed loan approval from the loan issuing agency and input their relevant information for the determination of the guaranteed loan approvals into their supplier terminal devices, e.g. a computers configured to carry out the intended purposes in the loan approval and guarantee system. Suppliers B and C may need individual login identifications and passwords to get access to their applicant terminal devices to better secure the input and transmission of the relevant information for the determination of the guaranteed loan approvals  405 ; 
     S 411   a . Supplier A transfers from the internet the buyer&#39;s confirmed letter of credit issued by the buyer&#39;s financial institution with additional confirmation as a collateral to guarantee the guaranteed loan approvals requested by all Suppliers A, B and C in the supply chain; 
     S 420   a . following step S 410   a , S 411   a ,  412   a  and S 4101   a , the bank&#39;s central computer receives Suppliers A, B and C&#39;s relevant information input for the determination of the guaranteed loan approvals  405  including the confirmed letter of credit from the internet. The bank&#39;s central computer checks and verifies the relevant information at database(es) containing relevant information related to Suppliers A, B and C including the financial interactive management system database  111  and/or other relevant databases, calculates on the suppliers&#39; financial data including the suppliers&#39; gross profit margins and the supply chain information, and checks on bank&#39;s loan limit for each of the suppliers who are requesting a guaranteed loan approval. 
     The bank&#39;s central computer may interact with the financial interactive management system database  111  to access certain information pertinent to the Suppliers A, B and C to check and verify whether the relevant information input by Suppliers A, B and C is correct and whether any fraud or default may occur. The bank&#39;s central computer may also access to other public or private databases to double check the relevant information input by Suppliers A, B and C to further verify and reassure the authentication and accuracy of the relevant information input by Suppliers A, B and C. 
     The bank&#39;s central computer may use the information received from Suppliers A, B and C and other relevant information from the financial interactive management system database  111  and other relevant databases to calculate on Suppliers A, B and C&#39;s financial data including the supply chain information, in deciding the amount of loan to be approved for each of Suppliers A, B and C. The amount of loan to be approved for each of Suppliers A, B and C may matched each of Suppliers A, B and C&#39;s gross profit margin the supply chain. 
     The bank&#39;s central computer may recheck on the bank&#39;s latest loan limit for each of Suppliers A, B and C, based on the applicable banking regulations, the bank&#39;s loan policies, the bank&#39;s capital and liquidity, etc., to reconfirm that the amount of loan to be approved for each of Suppliers A, B and C would not exceed the bank&#39;s latest loan limit for each of Suppliers A, B and C. 
     S 431   a . following step S 420   a , if the bank&#39;s central computer determines the outcome of any one of Suppliers A, B and C&#39;s (e.g. Supplier C&#39;s) guaranteed loan approval is negative, the bank&#39;s central computer sends a decline message to decline the loan approval to the supplier whose guaranteed loan approval receives a decline (e.g. Supplier C) using the internet. The bank&#39;s central computer may simultaneously or subsequently send the same decline message to other suppliers (e.g. Suppliers A and B) using the internet to notify other suppliers (e.g. Suppliers A and B) of the decline to approve the guaranteed loan approval to the supplier whose guaranteed loan approval receives a decline (e.g. Supplier C). 
     The decline message may be sent electronically using the internet by an automated messaging system from the bank&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In other embodiments the decline message may also be generated by the bank&#39;s central computer, printed as a paper copy and sent to the supplier by a logistic network e.g. by mail or via couriers. 
     S 432   a . following step S 420   a , if the bank&#39;s central computer determines the outcome of any one of Suppliers A, B and C&#39;s (e.g. Supplier B&#39;s) guaranteed loan approval is positive (i.e. a pass), the bank&#39;s central computer produces a guaranteed loan approval report  408  for the supplier whose guaranteed loan approval receives a sends a pass, and sends a pass message to approve the guaranteed loan approval to the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) using internet. The bank&#39;s central computer may simultaneously or subsequently send the same pass message to other suppliers (e.g. Suppliers A and C) using the internet to notify other suppliers (e.g. Suppliers A and B) of the confirmation to approve the guaranteed loan approval to the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B). 
     The guaranteed loan approval report  408  may include an amount of guaranteed loan approved and to be issued to the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B), and an interest rate of the loan approved and to be issued to the supplier. In another embodiment, the amount of guaranteed loan approved and to be issued of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) is limited to the gross profit margin of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) in the supply chain. The amount of guaranteed loan approved and to be issued of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) may be further limited by other relevant information of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) including its credit history, other information indicating its riskiness, and certain applicable banking regulations and other laws applicable to the transaction. 
     The pass message may be sent electronically using the internet by an automated messaging system from the bank&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In other embodiments the approval confirmation message may also be generated by the bank&#39;s central computer, printed as a paper copy and sent to the supplier by a logistic network, e.g. by mail or via couriers. 
     S 442   a . following step S 432   a , the bank signs a guaranteed loan agreement  409  with the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B). 
     The loan agreement  409  may be in the form of a standardized guaranteed loan contract. The guaranteed loan agreement  409  may be in an electronic, computer readable and processable format. The guaranteed loan agreement  409  may be sent electronically by an automated electronic contract signing system from the bank&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. The supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) may sign the guaranteed loan agreement  409  electronically with a proper identification verification process, i.e. e-signing process. The signed guaranteed loan agreement  409  may be thereafter stored in the financial interactive management system database  111 , or other databases for further references. It is to be understood that, notwithstanding the above embodiment, the guaranteed loan agreement  409  may also be reproduced in counterparts on a tangible medium including paper, one of which may be send to the supplier by a logistic network, e.g. by mail or via couriers for the supplier&#39;s signature. The guaranteed loan agreement  409  including all the counterparts may thereafter be scanned and stored electronically in the financial interactive management system database  111 , or other databases for further references. Paper or other tangible copies of the guaranteed loan agreement may also be stored in their original format for further references. 
     S 452   a . following step S 442   a , the bank distributes working capital to the account of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B). 
     The amount of working capital distributed to the account of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) may equal to the amount of loan approved and to be issued to the supplier in the guaranteed loan approval report  408  and may equal to the amount of loan allowed in the guaranteed loan agreement  409  between the bank and the supplier whose loan approval receives a pass (e.g. Supplier B). In another embodiment, the amount of working capital distributed to the account of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) is limited to the gross profit margin of the supplier whose guaranteed loan approval receives a pass (e.g. Supplier B) in the supply chain. 
     Subsequent to above steps, the suppliers may repay the bank the amount of working capital distributed by the bank to the suppliers&#39; accounts. In one embodiment, the amount of working capital repaid by the suppliers may be limited to the gross profit margins of the suppliers in the supply chain. In one embodiment the suppliers may repay the amount of working capital distributed to their accounts after the guaranteed letter of credit makes a payment pursuant to the buyer&#39;s approval. 
     Benefits from using the loan approval and guarantee system  400  includes the benefits from using the loan approval system  200  herein described. In addition, in the loan approval and guarantee system  400  only the top level applicant  4021  transfers the guaranteed letter of credit  4051  to the loan issuing agency  401  as a collateral to the financings to all applicants  4021 ,  4022 ,  4023  in the transaction; therefore other applicants  4022 ,  4023  in the transaction may not have to provide additional collaterals or guarantees to the loan issuing agency  401  to secure their loans. Thus the loan approval and guarantee system  400  may reduce the transaction costs and waiting times of the applicants  4021 ,  4022 ,  4023  in a supply chain transaction by simplifying the loan application and determination process. By utilizing the loan approval and guarantee system  400  it may also relieve smaller lower level applicants  4022 ,  4023  from the burden of proving its ability to repay the loan, and may reduce the costs of capital for all applicants  4021 ,  4022 ,  4023 , especially the smaller lower level applicants  4022 ,  4023 , because all applicants  4021 ,  4022 ,  4023  in the a supply chain are effectively guaranteed by the guaranteed letter of credit  4051 . 
     Insurance Underwriting Approval System 
     As shown in  FIG. 6 , an insurance underwriting approval system  600  is provided to produce an approval report for providing insurance to a supplier in a supply chain. The insurance underwriting system  600  is an embodiment of the financial interactive management system  100 , where the central processing system  101  interacts with applicants  103 ,  104  and  105  in a supply chain, and with the insurance provider  107 . The insurance underwriting approval system  600  may be utilized by various insurance providers, including insurance companies to provide insurances to suppliers in a supply chain and to facilitate a supply chain transaction. 
     In one embodiment The insurance underwriting approval system  600  may include an insurance provider  601 , one or several applicants  602  who is or are applying for its or their respective insurances from the insurance provider  601 , a central processing system of the insurance provider  603 , an applicant terminal device  604  used by each applicant, relevant information for the determination of an insurance approval  605 , a network  606  between the insurance provider  601  and the applicants  602 , one or several databases  607  containing relevant information related to the applicant(s). 
     As further illustrated in  FIG. 7 , in one embodiment the several steps are provided to operate the insurance underwriting approval system which may include: 
     S 610 . the applicant  602  requests the insurance approval from the insurance provider  601  and inputs the relevant information for the determination of the insurance approval  605  into its applicant terminal device  604 ; 
     S 620 . following step S 610 , the central processing system of the insurance provider  603  receives the relevant information for the determination of the insurance approval  605  for the applicant  602  from the network  606 , checks and verifies the information at database(es)  607  containing information related to the applicants  602 , calculates on the applicant  602 &#39;s financial data including its gross profit margin and the supply chain information if applicable to the applicant  602 , and checks on the insurance provider  601 &#39;s insurance limit for the applicant  602 ; 
     S 621 . following step  611 , the central processing system of the insurance provider  603  determines the outcome of the insurance approval; 
     S 631 . following step S 621 , if the central processing system of the insurance provider  603  determines the outcome of the insurance approval is negative, the central processing system of the insurance provider  603  sends a decline message to decline the insurance approval to the applicant  602  using the network  606 ; 
     S 632 . following step S 621 , if the central processing system of the insurance provider  603  determines the outcome of the applicant  602 &#39;s insurance approval is positive, the central processing system of the insurance provider  603  produces an insurance approval report  608  for the applicant  602  including an insurance premium applicable to the applicant  602 , and sends a pass message of a confirmation to approve the insurance approval to the applicant  602  using the network  606 ; 
     S 642 . following step S 632 , the insurance provider  601  signs an insurance agreement  609  with the applicant  602  whose insurance approval receives a pass; and 
     In one embodiment the insurance provider  601  is an insurance company issuing issuances to its various customers pursuant to their insurance approval applications. Preferably, an insurance provider  601  may be a subsidiary of the loan issuing agency  201  in a loan approval system  201 , because the insurance provider  601  may coordinate with the loan issuing agency  201  to facilitate the insurance approvals as well as the loan approvals. 
     In another embodiment, the several applicants  602  are suppliers in a supplier chain, where a top level supplier receives a purchase order from a buyer to make a purchase from the top level supplier together with a letter of credit from the buyer or the buyer&#39;s financial institution for the consideration of the purchase order. Lower level suppliers may contract with the top level supplier for their respective shares in the fulfillment of the purchase order from the buyer. Each supplier applies for its insurance approval from the insurance provider  601 . 
     In another embodiment, the central processing system for the insurance provider  603  is a central processing system of the insurance company. The central processing system of the insurance provider  603  may be any computer with below system configurations, or with any system configurations suitable for its intended purposes in the insurance underwriting approval system:
         browser: Microsoft Internet Explorer 7 or newer, Firefox 3.x or newer, Safari on iPad iOS version 5.x or newer, Google Chrome;   operating System: Microsoft Windows XP SP3 or newer;   RAM (random access memory): 2 GB;   hard drive: 10 GB free;   processor: Pentium dual core equivalent or equivalent AMD CPU.       

     In one embodiment the insurance provider  601  may need a login identification and a password to get access to the central processing system of the insurance provider  603  to better secure the processing and transmission of information. 
     In another embodiment the applicant terminal  604  used by each applicant  602  is a supplier terminal device. In other embodiments the applicant terminal device  604  may be a computer when the relevant information for the determination of the insurance approval  605  is in an analog or digital or other computer readable format storable on a data storage medium, and it may also be a printer or other devices which are capable to record and reproduce relevant information for the determination of the insurance approval  605  on paper copies or by other tangible copies. The applicant  602  may need an individual login identification and a password to get access to the applicant terminal device  604  to better secure the input and transmission of information. 
     In one embodiment the relevant information for the determination of the insurance approval  605  may include the applicant  602 &#39;s information needed for a determination of the insurance approval. In one embodiment when the applicants  602  are suppliers in a supply chain, the relevant information for the determination of the insurance approval  605  may include the suppliers&#39; company information, a copy of a buyer&#39;s purchase order to make a purchase from the suppliers in the supply chain, information about the supply chain including the suppliers&#39; gross profit margins, and the buyer&#39;s letter of credit provided by the buyer or its credit agency to the top level supplier in the supply chain, etc. 
     Preferably the applicants&#39;  602  gross profit margins is included in the relevant information for the determination of the insurance approval  605  because a applicant&#39;s  602  gross profit margin may be used to determine the maximum amount of insurance required for the applicant  602  to operate in a supply chain transaction also utilizing the loan approval system  200 . The use of a applicant&#39;s  602  gross profit margin in the insurance underwriting approval system  600  may benefit both the insurance provider  601  and the applicant  602 , and will be further explained below. 
     In one embodiment the relevant information for the determination of the insurance approval  605  may be in an electronic, computer readable format storable on a data storage medium, and it may also be in some other formats including paper copies or other tangible copies, etc. It is to be understood that when the relevant information for the determination of the insurance approval  605  is in a tangible format, the information contained therein may be scanned and transformed into a computer readable and processable format and may be thereafter received by the central processing system of the insurance provider  603 . 
     In one embodiment the network  606  between the insurance provider  601  and the applicants  602  may be either a wired or a wireless network, or any combination or configuration of the two, or via a form of network capable of information compiling and decompiling by the central processing system of the insurance provider  603  and the applicant terminal devices  604 , including wide area network, local area network, digital subscriber line, etc. In one embodiment the network  606  between the insurance provider  601  and the applicants  602  may use security socket layer or other encryption technologies to better secure the transmission of information between the insurance provider  601  and the applicants  602 . It is to be understood that notwithstanding the above embodiments, the network  606  may also be a logistics network employing a carrier or several carriers including first party carrier(s) as part of the applicant&#39;s  602  logistic system making personal deliveries of the relevant information for determination of the insurance approval  605 , or third party carries or courier service providers with similar functions. 
     In one embodiment the database(es)  607  containing the relevant information related to the applicants  602  may include a financial interactive management system database  111 . In one embodiment the database(es)  607  may also include database(es) publicly accessible and/or database(es) held privately and accessible by subscriptions, and the databases  607  contain the supplier&#39;s or the suppliers&#39; financial information, credit histories, and other relevant information potentially useful for the determination of the insurance approval(s). 
     Yet in another embodiment illustrated in  FIG. 7A , the several steps to operate the insurance underwriting approval system may be in the following where the insurance provider  601  is an insurance company, the applicant  602  is a supplier in a supply chain, the central processing system of the insurance provider  603  is an insurance company&#39;s central computer, the applicant terminal device  604  is an applicant terminal device, and the network is the internet: 
     S 610   a . the supplier in a supply chain requests an insurance approval from the insurance company and inputs relevant information for the determination of the insurance approval  605  into the insurance underwriting approval system using the supplier terminal device, e.g. a computer configured to carry out the intended purposes in the insurance underwriting approval system. The supplier may need an individual login identification and a password to get access to the supplier terminal device to better secure the input and transmission of the relevant information for the determination of the insurance approval. 
     S 620   a . following step S 610   a , the insurance company&#39;s central computer receives the relevant information input for the determination of the insurance approval from the internet. The insurance company&#39;s central computer checks and verifies the relevant information at database(es) containing information related to the supplier including the financial interactive management system database  111  and/or other relevant databases, calculates on the supplier&#39;s financial data including the supplier&#39;s gross profit margin and the supply chain information, and checks on insurance company&#39;s insurance limit for the supplier who is requesting an insurance approval. 
     In one embodiment the insurance company&#39;s central computer may interact with the financial interactive management system database  111  to access certain information pertinent to the supplier to check and verify whether the relevant information input by the supplier is correct and whether any fraud or default may occur. In one embodiment the insurance company&#39;s central computer may also access to other public or private databases to double check the relevant information input by the supplier to further verify and reassure the authentication and accuracy of the relevant information input by the supplier. 
     In one embodiment the insurance company&#39;s central computer may use the information received from the supplier and other relevant information from the financial interactive management system database  111  and other relevant databases to calculate on the supplier&#39;s financial data including the supply chain information, in deciding the amount of insurance to be approved for the supplier and the insurance premium for the supplier. In one embodiment the amount of insurance to be approved may be limited by the supplier&#39;s gross profit margin the supply chain. 
     In one embodiment the insurance company&#39;s central computer may recheck on the insurance company&#39;s latest insurance limit for the supplier, based on the applicable insurer regulations, the insurance company&#39;s insurance policies, the insurance company&#39;s capital and liquidity, etc., to reconfirm that the amount of insurance to be approved would not exceed the insurance company&#39;s latest insurance limit for the supplier. 
     S 621   a . the insurance company&#39;s central computer determine the outcome of the insurance approval. 
     S 631   a . following step S 621   a , if the insurance company&#39;s central computer determines the outcome of the insurance approval is negative, the insurance company&#39;s central computer sends a decline message to decline the insurance approval to the supplier using the internet. 
     The decline message may be sent electronically using the internet by an automated messaging system from the insurance company&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In other embodiments the decline message may also be generated by the insurance company&#39;s central computer, printed as a paper copy and sent to the supplier by a logistic network e.g. by mail or via couriers. 
     S 632   a . following step S 621   a , if the insurance company&#39;s central computer determines the outcome of the insurance approval is positive (i.e. a pass), the insurance company&#39;s central computer produces an insurance approval report  608  for the supplier, and sends a pass message of a confirmation to approve the insurance approval to the supplier using the internet. 
     The insurance approval report  608  may include the amount of insurance approved and to be provided to the supplier, and may also include the insurance premium for the supplier. In another embodiment, the amount of the insurance approved and to be provided is limited to the gross profit margin of the supplier in the supply chain. The amount of the insurance approved and to be provided may be further limited by other relevant information including the supplier&#39;s credit history, the supplier&#39;s other information indicating its riskiness, and certain applicable insurance companying regulations and other laws applicable to the transaction. 
     The pass message may be sent electronically using the internet by an automated messaging system from the insurance company&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is display on the supplier terminal device. In other embodiments the pass message may also be generated by the insurance company&#39;s central computer, printed as a paper copy and sent to the supplier by a logistic network, e.g. by mail or via couriers. 
     S 642   a . following step S 632   a , the insurance company signs an insurance agreement  609  with the supplier whose insurance approval receives a pass. 
     The insurance agreement  609  may be in the form of a standardized insurance contract. The insurance agreement  609  may be in an electronic, computer readable and processable format. The insurance agreement  609  may be sent electronically by an automated electronic contract signing system from the insurance company&#39;s central computer to the supplier terminal device, e.g. a computer, and thereafter is displayed on the supplier terminal device. The supplier whose insurance approval receives a pass may sign the insurance agreement  609  electronically with a proper identification verification process, i.e. e-signing process. The signed insurance agreement  609  may be thereafter stored in the financial interactive management system database  111 , or other databases for further references. It is to be understood that, notwithstanding the above embodiment, the insurance agreement  609  may also be reproduced in counterparts on a tangible medium including paper, one of which may be send to the supplier whose insurance approval receives a pass by a logistic network, e.g. by mail or via couriers for the supplier&#39;s signature. The insurance agreement  609  including all the counterparts may thereafter be scanned and stored electronically in the financial interactive management system database  111 , or other databases for further references. Paper or other tangible copies of the insurance agreement  609  may also be stored in their original format for further references. 
     In one embodiment the supplier whose insurance approval receives a pass may subsequently pay the insurance premium to the insurance company, and the insurance company may provide insurance to the supplier whose insurance approval receives a pass. 
     The amount of insurance provided to the supplier whose insurance approval receives a pass may equal to the amount of insurance approved and to be provided to the supplier in the insurance approval report and may equal to the amount of insurance allowed in the insurance agreement between the insurance company and the supplier whose insurance approval receives a pass. In another embodiment, the amount of working capital distributed to the account of the supplier whose insurance approval receives a pass is limited to the gross profit margin of the supplier in the supply chain. 
     Utilizing the insurance underwriting approval system  600  may save the insurance provider  601  significant amount of cost in its cost of reserves. The cost savings to the insurance provider  601  may be illustrated using the relevant components in the embodiment of the loan approval system  200  illustrated in Chart 1. In that embodiment, there is no (0%) deposit from Buyer X, and an insurance company as the insurance provider  601  may by requests provide insurances covering the supply chain. By utilizing the insurance underwriting approval system  600  herein described, the insurance company needs to provide insurances in the total amount of $1,000,000 for Suppliers A, B, C and D in the supply chain. In a traditional insurance underwriting system, the insurance company needs to provide insurances in the total amount of $2,530,000 (the total amount of the accounts receivables of Suppliers A, B, C and D) for Suppliers A, B, C and D to cover the potential account receivable risks in supply chain. Therefore in this embodiment the insurance company utilizing the insurance underwriting approval system  600  descried herein only needs to guarantee about 1/2.5 (1000/2530), i.e. 40%, of traditional trade financing accounts receivable to all the suppliers in a supply chain. 
     As the insurance company utilizing the insurance underwriting approval system  600  herein described only needs to guarantee about 1/2.5 (40%) of traditional trade financing accounts receivable to all suppliers in a supply chain, the corresponding reserves required utilizing the insurance underwriting approval system  600  herein described will be only about 40% (1000/2530) of traditional trade financing receivables. 
     In general the insurance provider&#39;s  601  reserve only generates very low return to the insurance provider  601  while insurance provider  601  needs to pay its shareholders an acceptable return on equity (i.e. cost of capital for the insurance provider  601 ). Employing less reserve to serve same amount of applicants and transactions means significant cost saving for the insurance provider  601 . In another embodiment the cost of capital for the insurance provider  601  is 10% and return on the insurance provider&#39;s  601  reserve is 1%. The net saving for insurance provider in reducing US$1 million insurance provider  601  reserve employed will be $90,000, i.e. $1 million×(10%−1%). In the same embodiment there is $50 billion of account receivable insurance policy in the insurance provider, utilizing the insurance underwriting approval system  600  herein described can reduce the insurance provider&#39;s  601  account receivable insurance policy to $20 billion (i.e. US$50 billion×40%). In this embodiment the insurance provider  601  is required to keep 5% of the account receivable insurance policy as reserves. Therefore reducing $30 billion (i.e. $50 billion−$20 billion) of account receivable insurance policy (while serving the same amount of applicants and same amount of supply chain financing transaction) means annual savings of $135 million (i.e. $30 billion×5%×9%) for the insurance provider  601 . 
     When the insurance provider  601  saves significant amount in cost of reserves in serving same amount of applicants and transactions, the insurance provider  601  will be able to provide cheaper insurance premiums to the applicants  602 , thereby lowering applicants&#39;  602  overall business overhead in operation in a supply chain transaction. Consequently it will facilitate the insurance provider  601  and applicants  602  to engage in more supply chain business transactions because the insurance provider&#39;s reserves are used more efficiently based when the insurance underwriting approval system  600  described herein is utilized. 
     It is to be understood that the ratio and percentage may change if the account receivable insurance portfolio of the insurance provider  601  has an average supplier level and average gross margin different from those embodiments described herein. Nonetheless utilizing the insurance underwriting approval system  600  may cause significant cost savings on the insurance provider&#39;s  601  cost of reserves. 
     Supply Chain Management System 
     As shown in  FIG. 8 , a supply chain management system  800  is provided for a supply chain with multiple suppliers, to link suppliers&#39; contracts, product flow and payment transactions together to form a chain to apply loans from a bank, with guarantee from the top level to bottom level of suppliers in a supply chain. The supply chain management system  800  is an embodiment of the financial interactive management system  100 , where the central processing system  101  interacts with applicants  103  in a supply chain, the supply chain manager  108 , and potentially with the loan issuing agency  106  and the insurance provider  107 . In one embodiment the supply management system  800  may be operated by an independent e-commerce service provide, otherwise it may also be operated by a loan issuing agency or other entities capable of carrying out the various functions of the supply chain management system  800 . 
     In one embodiment the supply chain management system  800  may include a supply chain manager  801 , several applicants  802  in a supply chain, a central processing system of the supply chain manager  803 , an applicant terminal device  804  for each applicant, a loan approval system  200   a  where the applicants  802  in the loan approval system  200   a  are applicants  802  in a supply chain, a supply chain management database  807 , and a network  806 . 
     As further illustrated in  FIG. 9 , in one embodiment several steps are provided to operate the supply chain management system  800  which may include: 
     S 810 . all applicants  802  in the supply chain submit their relevant information including the supply chains contract information to the central processing system of the supply chain manager  803  using their applicant terminal devices  804  over the network  806 ; 
     S 820 . the central processing system of the supply chain manager  803  submits the relevant information of all applicants  802  in the supply chain to the central processing system of the loan issuing agency in the loan approval system  200   a  over the network  806 ; 
     S 830 . the central processing system of the loan issuing agency processes the relevant information of all applicants  802  in the supply chain using the loan approval system  200   a , establishing a credit chain of all applicants; 
     S 840 . the central processing system of the supply chain manager  803  produces a product tracking report  808  listing all applicants  802  in the supply chain establishing a product chain of all applicants, and keeps the product tracking report  808  in the supply chain management database  807 ; 
     S 850 . the central processing system of the supply chain manager  803  controls the loan approval and the production lead time over the network  806 , accesses the supply chain management database  807  and updates the product tracking report  808  over the network  806 ; 
     S 851 . the central processing system of the supply chain manager  803  conducts regular fraud and default checking and control over the network  806 , accesses the supply chain management database  807  and updates the product tracking report  808  over the network  806 ; 
     S 852 . the central processing system of the supply chain manager  803  conducts regular communications with applicants  802 , and alerts applicants  802  of an actual or potential fraud or default; 
     S 860 . the central processing system of the supply chain manager  803  monitors product delivery over the network  806 , and conducts product delivery control over the network  806 . 
     It is to be understood that the supply chain management system  800  may further include an insurance underwriting system  600   a  described herein where the applicants in the insurance underwriting system  600   a  are applicants  802  in a supply chain in the supply chain management system  800 , and an additional step S 8090  before step S 810  herein described: 
     S 8090 . all applicants  802  in the supply chain request their insurance approvals using the insurance underwriting system  600   a  over the network  806 , and receive their respective insurances. 
     In another embodiment the supply chain manager  801  may be an e-commerce portal operator. The supplier chain manager  801  may also be a department of the loan issuing agency in the loan approval system, e.g. an e-commerce department in a bank which also is the loan issuing agency in a loan approval system. 
     In another embodiment the applicants  802  in the supply chain are suppliers in a supply chain, where a top level supplier receives a purchase order from a buyer to make a purchase from the top level supplier together with a letter of credit from the buyer or the buyer&#39;s financial institution for the consideration of the purchase order. In the same embodiment lower level applicants  802  are lower level suppliers in the supply chain who contract directly with the top level supplier in the supply chain for their respective shares or gross profit margins in the fulfillment of the purchase order from the buyer. In another embodiment, a lower level applicant  802  in the transaction contracts with another lower level applicant in the transaction, the latter of which contracts with the top level applicant in the transaction, forming a chain of contracts in fulfillment of the purchase order. 
     In another embodiment, the central processing system for the supply chain manager  801  is a central computer of an e-commerce portal provider. The central processing system for the supply chain manager  801  may also be the central processing system of the loan issuing agency when the supply chain manager  801  is the loan issuing agency in the loan approval system. The central processing system of the supply chain manager  803  may be any computer with below system configurations or with any system configurations suitable for its intended purposes in the supply chain management system:
         browser: Microsoft Internet Explorer 7 or newer, Firefox 3.x or newer, Safari on iPad iOS version 5.x or newer, Google Chrome;   operating System: Microsoft Windows XP SP3 or newer;   RAM (random access memory): 2 GB;   hard drive: 10 GB free;   processor: Pentium dual core equivalent or equivalent AMD CPU.       

     In one embodiment the supply chain manager  801  may need a login identification and a password to get access to the central processing system of the supply chain manager  803  to better secure the processing and transmission of information. 
     In another embodiment the applicant terminal device  804  for each applicant is a applicant terminal device  204  in the loan approval system  200   a . Embodiments of the applicant terminal device  204  in the loan approval system  200  herein described may be applicable to the applicant terminal device  804  in the supply chain management system  800 . 
     Embodiments of the components and steps of the loan approval system  200  herein described may be applicable to the loan approval system  200   a  in the supply chain management system  800 . 
     In one embodiment the supply chain management database  807  may be the financial interactive management system database  111 . The supply chain management database  807  may also be another database specially configured for its intended purposes in the supply chain management including storing relevant information in the supply chain management system, being capable to be accessed from the central processing system of the supply chain manager  803 , and being capable to update information contained in the supply chain management database  807  following directions from the central processing system of the supply chain management system. 
     Embodiments of the network  206  in the loan approval system  200  herein described may be applicable to the network  806  in the supply chain management system  800 . 
     Yet in another embodiment illustrated in  FIG. 9A , the several steps to operate the supply chain management system may be the following where the supply chain manager  801  is an e-commerce department of a bank which is also the loan issuing agency in the loan approval system  200   a , where the applicants  802  in the supply chain are suppliers in a supply chain, the central processing system of the supply chain manager  803  is the bank&#39;s e-commerce computer which may also be the bank&#39;s central computer in the loan approval system  200   a , the applicant terminal devices  804  are applicant terminal devices, the supply chain management database  807  is a financial interactive management system database  111 , and the network  806  is the internet: 
     S 810   a . all suppliers in the supply chain submit their relevant information including the supply chains contract information to the bank&#39;s e-commerce computer using their applicant terminal devices. The suppliers in the supply chain may submit their relevant information using the internet. 
     S 820   a . the bank&#39;s e-commerce computer submits the relevant information of all suppliers in the supply chain to the bank&#39;s central computer in the loan approval system  200   a . the bank&#39;s e-commerce computer may submit the relevant information of all suppliers in the supply chain to using the internet. 
     S 830   a . the bank&#39;s central computer processes the relevant information of all suppliers in the supply chain using the loan approval system, establishing a credit chain of all suppliers in the supply chain. 
     S 840   a . the bank&#39;s e-commerce computer produces a product tracking report listing all applicants  802  in the supply chain over the internet establishing a product chain of all suppliers in the supply chain, and keeps the product tracking report in the financial interactive management system database  111  over the internet. 
     In one embodiment the product tracking report may include information relating the processing of the buyer&#39;s purchase order, e.g. contracts between suppliers, amount and prices for raw materials acquired, shipment information, and bills of lading, etc. In one embodiment the information contained in the product tracking report may be submitted by suppliers using their applicant terminal devices, or may be acquired accessing other database(es) containing relevant information. 
     In one embodiment the transmission of information in the supply chain management system over the internet may be encrypted to further secure the transmission of information. 
     S 850   a . the bank&#39;s e-commerce computer controls the loan approvals and the production lead time over the internet, accesses the financial interactive management system database  111  and updates the product tracking report over the internet. 
     In one embodiment the transmission of information in the supply chain management system over the internet may be encrypted to further secure the transmission of information. 
     S 851   a . the bank&#39;s e-commerce computer conducts regular fraud and default checking and control, accesses the financial interactive management system database  111  and updates the product tracking report over the internet; 
     In one embodiment the bank&#39;s e-commerce computer may be specially programmed using a set of algorithms and defined parameters to perform threshold screenings on a regular (e.g. daily) basis to detect any actual or potential fraud or default in the supply chain. In one embodiment the bank&#39;s e-commerce computer may use pre-set due dates as thresholds to carry out the regular fraud and default checking and control. The bank&#39;s e-commerce computer may use due dates including for example the dates of contracts, the dates of shipments, the dates of processing and operation in the supply chain, and the dates to make payments or repayments to the bank, to monitoring the supply chain and to determine any actual or potential fraud or default. 
     In one embodiment the transmission of information in the supply chain management system over the internet may be encrypted to further secure the transmission of information. 
     S 852   a . the bank&#39;s e-commerce computer conducts regular communications with suppliers, and alerts suppliers of an actual or potential fraud or default. 
     In one embodiment the communication with suppliers may use frequent emails or other electronic communications like a bulletin board system or a webpage, may use the applicant terminal devices as the receiver end, and may also use the mail system or couriers. 
     In one embodiment the bank&#39;s e-commerce computer may alert suppliers of an actual or potential fraud or default using the same methods in communicating with suppliers. 
     S 860   a . the bank&#39;s e-commerce computer monitors product delivery, and conducts product delivery control. 
     In one embodiment the bank&#39;s e-commerce computer may receive information from applicant terminal devices when suppliers ship the goods or products and input relevant carrier (e.g. UPS) and tracking information. The bank&#39;s e-commerce computer may subsequently access the carrier&#39;s database (e.g. UPS&#39; shipment tracking system) to monitor the goods or products delivery. 
     In one embodiment the bank&#39;s e-commerce computer may conduct product delivery control by comparing past processing and delivery time information related to the suppliers, to the supply chain, and to the goods or products, and providing suppliers estimates on delivery time. The bank&#39;s e-commerce computer may track supplier&#39;s processing and shipping time and alert suppliers of approaching due dates in making deliveries. 
     Utilizing the supply chain management system  800  may reduce actual borrowings and may increase borrowing capacity of applicants  802  including SMEs (small and medium size enterprises) and most companies, because the supply chain management system  800  may increase product quality control in products supply chain. The supply chain management system  800  may also facilitate and speed up marketing and matching in consumer/industrial products supply chain when the central processing system of the supply chain manager  803  generates and updates the product tracking report, provides communications with and alerts to the applicants  802 , controls loan approvals, lead time and delivery time, and conducts regular fraud and default and checking and control. 
     The financing interest charges in the supply chain management system  800  may be significantly lower than standard receivables financing&#39;s interest charges because the supply chain management system  800  may incorporate the loan approval system  200  herein described. The insurance premiums in the supply chain management system  800  may also be significantly lower than standard receivables insurance premiums because the supply chain management system  800  may also incorporate the insurance underwriting approval system  400  herein described. SMEs may enjoy lower total financing costs and insurance premiums using the supply chain management system  800 . 
     On the other hand, the supply chain manager  801  e.g. the e-commerce provider or the bank&#39;s e-commerce department may charge service fees for providing related services in the supply chain management system  800 , thus the supply chain management system  800  may provide incentives to banks or other e-commerce operators to engage in more supply chain transactions. 
     The supply chain management system  800  may be used for financing start-up companies, launching new products or brands of SMEs, or financing existing products or brands of most companies. By utilizing the supply chain management system  800 , SMEs may be more confident in taking new business orders in a supply chain without worrying about finding additional working capital for the new business orders, because the utilizing of the loan approval system  200  and the insurance underwriting approval system  600  may reduce the SMEs&#39; operating costs in a supply chain transaction. In addition, utilizing the supply chain management system  800  may help SMEs to identify good customers and reduce fraud or default in their daily business because the supply chain management system  800  conducts regular checking to identify actual or potential fraud or default.