The Dun And Bradstreet Paydex Business Credit Score
The Dun and Bradstreet Paydex Business
The Dun and Bradstreet Paydex Business
Credit Score
The main credit score used in the business world
is known as a Paydex score provided by Dun and
Bradstreet.
This number assess a businesss lending risk much
the same as a consumer credit score reflects a
consumers 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&Bs
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 many BIG differences from a business
Paydex credit score and an individual FICO
consumer credit score.
Consumer FICO credit scores range from 350-
850. The Paydex Score ranges from 0-100 with 100
being the highest score you can obtain.
Individual credit scores are calculated based on a
number of factors.
The Paydex score is calculated based on only one
single factor; whether a business makes prompt
payments to its suppliers and creditors within the
agreed upon terms of payment.
Most lenders and suppliers are looking for a score
of 70 and higher. Having a score of 80 and above
is very good.
Here is a breakdown of how the Paydex credit
score is calculated:
Payment Expectation
Expect payment may come early .....................100
Payments generally come within early
payment discount period ...................................90
Payment is prompt ..............................................80
Payment comes 14 days beyond terms .............70
Payment comes 21 days beyond terms .............60
Payment comes 30 days beyond terms .............50
Payment comes 60 days beyond terms .............40
Payment comes 90 days beyond terms .............30
Payment comes 120 days beyond terms ............20
Unavailable.........................................................UN
If you own a business, your Paydex score is essential
in establishing new credit and continuing to build
credit limits exceeding $100,000.
It only takes 60 days to establish a positive Paydex
credit score. To start you will first want to apply for
a DUNS Number, a nine digit business identifying
number, with Dun and Bradstreet.
Once your DUNS number is established you will
next want to find a merchant who will extend
you credit and then report that credit to Dun and
Bradstreet.
Once you have positive business credit report to
Dun and Bradstreet you will have a positive Paydex
score established.
You will want to then apply for more business
credit and use it regularly. Make sure you pay all
payments back early to raise your scores to 80 or
higher.
You can easily and quickly establish a positive
Paydex credit score.
As you continue to pay your bills timely your
scores will continue to raise giving you the ability
to qualify for credit in your business name.
by: brent
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