19 Nov Paydex Business Credit Score Courtesy of Dun and Bradstreet
If we’re talking about the business world, Paydex score is the biggest credit score and it is a product of Dun and Bradstreet. They assess the lending risk of businesses the same way consumer credit scores are able to reflect the individual credit risk of a consumer. Paydex can be equated to the business version of a person’s credit score. According to Dun & Bradstreet, “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, based on trade experiences reported to D&B by various vendors.”
There are several differences between business Paydex credit scores and FICO consumer credit scores for individuals. FICO consumer credit scores fall between the range of 350 and 850, while that of Paydex falls between 0 to 100 and 100 is the highest obtainable score. There are certain factors that influence individual credit scores.
Only one factor matters when calculating a Paydex score; whether or not the business makes payment to its creditors and suppliers on time within the payment terms agreed upon. Most suppliers and lenders will rather work with a 70 or a higher score. If your score is up to 80 or higher, then you’re doing very well.
Below is an analysis of Paydex credit score calculation:
Payment Expectation
Where payments are expected to come early: 100
Payments expected early when there’s still payment discount: 90
Prompt payment: 80
Payment arrives 14 days after the set term: 70
Payment arrives 21 days after the set terms: 60
Payment arrives 30 days after the set terms: 50
Payment arrives 60 days after the set terms: 40
Payment arrives 90 days after the set terms: 30
Payment arrives 120 days after the set terms: 20
Unavailable: UN
Paydex scores are very essential for business owners. It helps when trying to establish new credit and when building credits limits higher than $100,000. A credible paydex credit score can be established in 60 days. To get started, you must first make an application for your DUNS Number (it is a nine-digit identifying number) through Dun and Bradstreet. As soon as you establish the DUNS number, the next step is to look for a merchant that can extend your credit then report same to Dun and Bradstreet. As soon as you’re able to establish a positive business credit with Dun and Bradstreet, your positive Paydex score is established. You should then apply to get additional business credit and make sure you use it regularly. This is how to establish a credible credit score. Your scores will rise as you pay your bills on time making your business name credit-worthy.
About the Author
Jenella J. Brown is currently the CEO and a FCRA Board Certified Credit Consultant at A Good Name Credit Solutions & Tax Service, LLC. At A Good Name Credit Solutions, she specializes in raising credit scores, income taxes, tax resolutions, and helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.
Ms. Brown is the author of the book “A Good Name Credit Solutions” which can be purchased on amazon. The book is a personal guide designed to give the reader a step-by-step process of understanding how the credit system works and how to restore their own credit. Ms. Brown is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today. For more information on building business credit, business loans, or tax issues or credit restoration; visit the website at: www.agoodnamecredit.com for a FREE consultation.
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