Using commercial share of wallet to rate business prospects

Abstract

Commercial size of spending wallet (“CSoSW”) is the total business spend of a business including cash but excluding bartered items. Commercial share of wallet (“CSoW”) is the portion of the spending wallet that is captured by a particular financial company. A modeling approach utilizes various data sources to provide outputs that describe a company's spend capacity. Research analysts can use CSoW/CSoSW to provide a comprehensive and robust indication of the business prospects of a rated company.

1 . A method of rating business prospects, comprising: 
 (a) modeling industry spending patterns using individual and aggregate corporate data, including financial statement data;    (b) estimating a commercial size of spending wallet of a company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and    (c) issuing a corporate rating based on the commercial size of spending wallet of the company.    
     
     
         2 . The method of  claim 1 , wherein the corporate rating is issued for the company.  
     
     
         3 . The method of  claim 2 , wherein step (c) comprises: 
 issuing a corporate rating based on the commercial size of spending wallet of the company and historical financial information of the company.    
     
     
         4 . The method of  claim 1 , wherein the company is a customer of a provider, and the corporate rating is issued for the provider.  
     
     
         5 . The method of  claim 4 , wherein step (c) comprises: 
 issuing a corporate rating for the provider based on the commercial size of spending wallet of the company and historical financial information of the provider.    
     
     
         6 . The method of  claim 1 , wherein step (c) comprises: 
 updating an existing corporate rating based on the commercial size of spending wallet of the company.    
     
     
         7 . The method of  claim 1 , wherein step (b) comprises: 
 outputting the commercial size of spending wallet as a score.    
     
     
         8 . The method of  claim 1 , further comprising: 
 (d) estimating a share of wallet for the company.    
     
     
         9 . A system for rating business prospects, comprising: 
 a processor; and    a memory in communication with the processor, the memory for storing a plurality of processing instructions for directing the processor to: 
 model industry spending patterns using individual and aggregate corporate data, including financial statement data;  
 estimate a commercial size of spending wallet of a company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and  
 issue a corporate rating based on the commercial size of spending wallet of the company.  
   
     
     
         10 . The system of  claim 9 , wherein the corporate rating is issued for the company.  
     
     
         11 . The system of  claim 10 , wherein the processing instructions for directing the processor to issue a corporate rating comprise instructions for directing the processor to: 
 issue a corporate rating based on the commercial size of spending wallet of the company and historical financial information of the company.    
     
     
         12 . The system of  claim 9 , wherein the company is a customer of a provider, and the corporate rating is issued for the provider.  
     
     
         13 . The system of  claim 12 , wherein the processing instructions for directing the processor to issue a corporate rating comprise instructions for directing the processor to: 
 issue a corporate rating for the provider based on the commercial size of spending wallet of the company and historical financial information of the provider.    
     
     
         14 . The system of  claim 9 , wherein the processing instructions for directing the processor to issue a corporate rating comprise instructions for directing the processor to: 
 update an existing corporate rating based on the commercial size of spending wallet of the company.    
     
     
         15 . The system of  claim 9 , wherein the instructions for directing the processor to estimate comprise instructions for directing the processor to: 
 output the commercial size of spending wallet as a score.    
     
     
         16 . The system of  claim 9 , further comprising instructions for directing the processor to: 
 estimate a share of wallet for the company.