subject: The Dun And Bradstreet Paydex Business Credit Score [print this page] 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
