Dun and Bradstreet Paydex Business Credit Score

The main credit score used in the business world is known as the Paydex score provided by Dun and Bradstreet.

This number assesses the credit risk of a business in the same way that a consumer credit score reflects the individual credit risk of a consumer.

Paydex is essentially the business equivalent of your personal credit score.

The exact Dunn & Bradstreet, or D&B definition is: The D&B PAYDEX┬« Score is D & B’s unique dollar-weighted numerical indicator of how a business paid its invoices over the past year, based on business experiences reported to D&B by various vendors.

There are many BIG differences between a business Paydex score and an individual consumer FICO score.

Consumer FICO credit scores range from 350 to 850. The Paydex score ranges from 0 to 100, with 100 being the highest score you can get.

Individual credit scores are calculated based on a number of factors.

The Paydex score is calculated based on a single factor; if a company makes timely payments to its suppliers and creditors within the agreed payment terms.

Most lenders and providers look for a score of 70 or higher. Having a score of 80 or more is very good.

Here’s a breakdown of how the Paydex Business Score is calculated:

Expectation of payment

100 Wait for payment to arrive earlier

90 Payments are generally made earlier

payment discount period

80 Payment is on time

70 Payment arrives 14 days beyond terms

60 Payment arrives 21 days after deadlines

50 Payment arrives 30 days beyond terms

40 Payment arrives 60 days beyond terms

30 Payment arrives 90 days beyond terms

20 Payment arrives 120 days beyond terms

ONE not available

If you are a business owner, your Paydex score is essential to establishing new credit and continuing to create credit limits that exceed $ 100,000.

It only takes 60 days to establish a positive Paydex score. To get started, you will first want to request a

DUNS number, a nine-digit business identification number, with Dun and Bradstreet.

The DUNS number helps potential customers, lenders, and vendors assess your business creditworthiness.

Once your DUNS number has been established, the next thing you want to find is a merchant who will grant you credit and then report that credit to Dun and Bradstreet.

Once you have a positive business credit report for Dun and Bradstreet, you will have a positive Paydex score established.

Then you’ll want to apply for more business credit and use it regularly. Make sure to pay all payments ahead of time to raise your scores to 80 or higher.

You can quickly and easily establish a positive credit score from Paydex.

As you continue to pay your bills on time, your scores will continue to increase, allowing you to qualify for credit on behalf of your business.

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