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The main credit score used in the business world is known as the Paydex score provided by Dun and Bradstreet.
This number measures the credit risk of a business in the same way that a consumer credit score reflects a consumer’s personal credit risk.
Paydex is essentially the business equivalent of your personal credit score.
The exact definition from Dun & Bradstreet, or D&B, is: The D&B Paydex® Score is D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, by various vendors. Based on trading experiences reported to B.
There are several major differences between the business Paydex score and the personal FICO consumer score.
Consumer FICO credit scores range from 350-850. Paydex scores range from 0-100 with 100 being the highest score you can get.
Personal credit score is calculated on the basis of several factors.
The Pedex score is calculated based on only one factor; Whether a business pays its suppliers and creditors promptly within the agreed terms of payment.
Most lenders and suppliers are looking for scores of 70 and above. It is very good to have a score of 80 and above.
Here are the details on how the Paydex Business Score is calculated:
payment expectation
100 hope the payment can come soon
90% payouts usually come quickly
payment grace period
80 Payment is prompt
70 days after payment terms arrives
60 days after 21 days from payment terms
50 days after 30 days from payment terms
60 days after 40 payment terms arrive
90 days after 30 payment terms arrive
120 days after 20 payment terms arrive
un unavailable
If you are a business owner, your Paydex score is required to establish new credit and continue to build a credit limit of over $100,000.
It only takes 60 days to establish a positive Paydex score. To start you will first want to apply for a
The DUNS number is a nine-digit business identification number associated with Dun and Bradstreet.
The DUNS number helps potential customers, lenders and suppliers evaluate the credit worthiness of your business.
Once your DUNS number is established, you will want to find a merchant who will give you credit and then report that credit to Dun & Bradstreet.
Once you have a positive business credit report to Dun and Bradstreet, you will have a positive Paydex score established.
You will then want to apply for more business credit and use it regularly. Make sure you make all payments back early to raise your score to 80 or higher.
You can establish a positive Paydex credit score easily and quickly.
As you continue to pay your bills on time, your score will continue to rise, giving you the ability to qualify for credit in the name of your business.
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