How the Paydex Score is Determined
by David Disraeli
Do you have a Paydex Score?
You probably have personal credit scores established, and you are probably familiar with your scores at Equifax, Experian, and Trans Union.
But do you have a Paydex business credit score yet? The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet. This number assess a business’s lending risk much the same as a consumer credit score reflects a consumer’s individual credit risk. The exact definition from Dunn & Bradstreet, or D&B is: 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 many BIG differences from a business Paydex credit score and an individual FICO 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. Having a Paydex business score of 80 or higher is very good, as scores below 70 are very bad. 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. For example, prompt payments will produce a Paydex score of 80. A 70 score reflects paying 15 days behind, 60 score is 22 days behind, a 30 score
reflects paying 90 days behind, and a 20 Paydex reflects paying bills 120 days late. If you own a business, your Paydex score is essential
in establishing new credit and continuing to build credit limits exceeding $100,000. Call me on my number below to start the process
of establishing your Paydex score and getting approved for $50,000 in business credit this year with no personal guarantee and regardless of your
personal credit quality.
Call David Disraeli for more information at 512-763-2419 to learn more.