The Dun and Bradstreet Paydex Business Credit Score
The primary credit score used in the business world is known as the Paydex score provided by Dun and Bradstreet.
This number assesses a business’s credit risk in much the same way that a consumer credit score reflects a consumer’s individual credit risk.
Paydex is essentially the business equivalent of your personal credit score.
The exact definition from Dunn & Bradstreet or D&B is: The D&B PAYDEX® Score is D&B’s unique dollar-weighted digital indicator of how a firm paid its bills in the past year, based on business experience reported to D&B by various vendors.
There are very BIG differences between the Paydex business score and the FICO individual consumer score.
Consumer FICO credit scores range from 350-850. The Paydex score ranges from 0-100, 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 just one single factor; whether a business makes timely payments to its suppliers and creditors within agreed payment terms.
Most lenders and providers look for a score of 70 and above. Having a score of 80 and above is very good.
Here’s a breakdown of how the Paydex Business Score is calculated:
Waiting for payment
100 Expect payment to come sooner
90 Payments usually come sooner
payment grace period
80 Payment is fast
70 Payment comes 14 days after the due date
60 Payment comes 21 days after the due date
50 Payment comes 30 days after the due date
40 Payment comes 60 days after the due date
30 Payment comes 90 days after the due date
20 Payment comes 120 days past due
UN is not available
If you own a business, your Paydex score is essential to establishing new credit and continuing to build credit limits in excess of $100,000.
It only takes 60 days to establish a positive Paydex result. To get started, you must first apply for a
DUNS number, a nine-digit business identification number, with Dun and Bradstreet.
The DUNS number helps potential customers, lenders and suppliers evaluate your business’s creditworthiness.
Once your DUNS number is established, you will want to find a merchant that will give you credit and then report that credit to Dun and Bradstreet.
Once you have a positive business credit report with Dun and Bradstreet, you will have a positive Paydex score established.
After that, you’ll want to apply for more business credit and use it regularly. Make sure you pay back all payments early to raise your scores to 80 or higher.
You can easily and quickly establish a positive credit score on Paydex.
As long as you continue to pay your bills on time, your scores will continue to rise, allowing you to qualify for credit on behalf of your business.
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