How To Improve Your D&B Paydex Business Credit Score
The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet.
The Paydex credit score reflects a business' lending risk much in the same way as a consumer credit score reflects the individual credit risk of the consumer. While the personal credit score utilized by the three personal credit reporting agencies is calculated completely differently, the Paydex credit score does measure a business lending risk in much the same way.
Various vendors report to Dun and Bradstreet about how a firm paid its bills over the past year. This information as to how you pay your bills to suppliers and creditors within the agreed upon terms becomes a unique dollar weighted numerical indicator as is known as your Paydex Credit Score.
An individual FICO consumer credit score is much different from a business Paydex credit score. While personal credit scores range from 350-850, the Paydex score ranges from 0-100. With 100 being the highest Paydex Credit Score attainable, most creditors and suppliers are expecting a minimum score of 70 while a score of 80 or above is preferable.
Here is a breakdown of how the Paydex credit score is calculated:
Early payment before due date 100
Payments generally come within early payment discount period is a score of 90
Prompt Payment 80
Payment after 14 days from due date 70
Twenty One days beyond terms 60
Payment comes 30 days beyond terms is a score of 50
Payment after 60 days from due date 40
Payment comes 90 days beyond terms is a score of 30
Payment after 120 days from due date 20
Unavailable UN
The Paydex Credit score is important if you own a business in establishing new credit and building credit limits over $100,000.
It only takes sixty days to establish a positive Paydex credit score. To start, businesses will first need to apply for a DUNS Number with Dun and Bradstreet.
After the nine digit number is assigned by D&B the business owner will need to locate vendors who will offer credit and then report that credit to Dun & Bradstreet.
Once you have positive business credit reported to D& B you will have a positive Paydex score established. You will then want to apply for more business credit and use it regularly. Make sure you pay all payments back early to raise your score to 80 or higher.
You will notice how easily and quickly you can establish a positive Paydex score. Just continue to your suppliers and business creditors on a timely basis. This will result in not only an increased Paydex score buy also in more business credit available to you.
The Paydex credit score reflects a business' lending risk much in the same way as a consumer credit score reflects the individual credit risk of the consumer. While the personal credit score utilized by the three personal credit reporting agencies is calculated completely differently, the Paydex credit score does measure a business lending risk in much the same way.
Various vendors report to Dun and Bradstreet about how a firm paid its bills over the past year. This information as to how you pay your bills to suppliers and creditors within the agreed upon terms becomes a unique dollar weighted numerical indicator as is known as your Paydex Credit Score.
An individual FICO consumer credit score is much different from a business Paydex credit score. While personal credit scores range from 350-850, the Paydex score ranges from 0-100. With 100 being the highest Paydex Credit Score attainable, most creditors and suppliers are expecting a minimum score of 70 while a score of 80 or above is preferable.
Here is a breakdown of how the Paydex credit score is calculated:
Early payment before due date 100
Payments generally come within early payment discount period is a score of 90
Prompt Payment 80
Payment after 14 days from due date 70
Twenty One days beyond terms 60
Payment comes 30 days beyond terms is a score of 50
Payment after 60 days from due date 40
Payment comes 90 days beyond terms is a score of 30
Payment after 120 days from due date 20
Unavailable UN
The Paydex Credit score is important if you own a business in establishing new credit and building credit limits over $100,000.
It only takes sixty days to establish a positive Paydex credit score. To start, businesses will first need to apply for a DUNS Number with Dun and Bradstreet.
After the nine digit number is assigned by D&B the business owner will need to locate vendors who will offer credit and then report that credit to Dun & Bradstreet.
Once you have positive business credit reported to D& B you will have a positive Paydex score established. You will then want to apply for more business credit and use it regularly. Make sure you pay all payments back early to raise your score to 80 or higher.
You will notice how easily and quickly you can establish a positive Paydex score. Just continue to your suppliers and business creditors on a timely basis. This will result in not only an increased Paydex score buy also in more business credit available to you.
About the Author:
Michael Sacks is a recognized expert with nearly 30 years experience in financial services and banking. Through his company's website you can get a free e-book aboutestablishing business credit and getting funds for your business You will also learn how to avoid the nine crucial finance mistakes business owners make.. This article, How To Improve Your D&B Paydex Business Credit Score has free reprint rights.
posted by Vittoria @ September 11, 2013
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