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 business’s lending risk much the same as a consumer credit score reflects a consumer’s 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&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 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 Score
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
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 rise giving you the ability to qualify for credit in your business name.
We partner with RMS Business Funding, who offers one of the most comprehensive funding systems in the world.
Clients are guided through an online funding application that actually reveals exactly what the lender is looking for in each section. Their application and coaching team help ensure your business is set up credibly so you can have the best chance to be approved for funding.
You are then pre-qualified for funding through thousands of funding institutions.
We provide access to funding programs for business owners with good or bad personal credit. Available funding also includes programs for exiting or startup businesses. And you can be approved for factoring and financing as high as 25 million dollars.
Some funding we offer includes secure and unsecure credit lines, account receivable factoring, merchant cash advances, purchase order and inventory financing, revenue financing, equipment leasing and financing, SBA loans, 401k and securities loans, business credit cards, and more.
You have access to your own funding advisor to guide you through the approval steps for each funding program. And you will have access to an easy step-by-step process and coaching to assist you with building a business credit profile so you can qualify for even more funding.
Contact them today to get approved for funding for your business and to access your own business credit and funding suite.
Fill out the form below, and a representative from RMS Business Funding will promptly contact you.