Patent ID: 8706615

Claim:
A computing device for evaluating an ability of a borrower to repay a loan, the borrower having a transaction account having payment records associated therewith, the payment records showing, on a daily basis, individual cash inflows or outflows for individual financial transactions, comprising: a processor; memory communicatively coupled to the processor; and computer-executable instructions stored on the memory, wherein the computer-executable instructions, when executed by the processor, cause the computing device to: access the payment records; analyze the payment records and segregate the payment records into the individual cash inflows and outflows associated with the individual financial transactions; determine a daily total cash inflow for each day within a plurality of days within a past period of time by summing the individual cash inflows for each day within the plurality of days within the past period of time; determine a daily total cash outflow for each day within the plurality of days within the past period of time by summing the individual cash outflows for each day within the plurality of days within the past period of time; determine daily net cash flows for the borrower over the past period of time by subtracting the daily total cash outflow from the daily total cash inflow for each day within the plurality of days within the past period of time; smooth at least one of the daily net cash flows, the daily total cash inflows, and the daily total cash outflows to reduce day to day variations therein; determine a trend of cash flow for the borrower over the past period of time based on at least one of the smoothed daily net cash flows, daily total cash inflows, and daily total cash outflows; project at least one of the daily net cash flow, daily total cash inflow, and daily total cash outflow of the borrower over a period of time subsequent to the past period of time based on the trend of cash flow for the borrower over the past period of time; and classify the borrower as belonging to a predetermined risk group based on the projection of the cash flow and a predetermined criterion.