Reviewing Your PAYDEX Score

Written by on April 11, 2014 in Finance And Lending - 1 Comment
Paydex Score

What is a PAYDEX score?

You may be familiar with what a FICO score is. Your personal credit score comes up often, whether you are buying a car, applying for a credit card or refinancing your house. If you are a small business owner then you have probably heard the term PAYDEX Score. What is this? Your PAYDEX score is the credit score of your business, similar to how your FICO score is your personal credit rating.

Who decides what my PAYDEX score is?

Your PAYDEX Score is created by Dun & Bradstreet. D&B created a unique way to determine a business’s payment performance. Up to 875 payment experiences and a minimum of 4 payment experiences are used to create your score. The payment experiences that D&B have on file for your business are taken into account to create your PAYDEX. An experience is based upon when payments were made in relation to the terms granted.

PAYDEX scores range from 1- 100; the higher the score the better.

What does my score mean?

–           0 -49 you are a high risk of late payment

–          50-79 you are a medium risk of late payment

–          80-100 you are a low risk of late payment

Dun and Bradstreet will notify you if your score changes are bringing you close to a different risk category.

How does Dun & Bradstreet receive my payment experiences?

–          Suppliers and vendors that do business with D&B will send your payment experiences to the firm.

Who uses my PAYDEX score?

–          Banks

–          Landlords

–          Suppliers

–          Lessors

–          Customers

How is my PAYDEX score used?

–          To decide if a sale should be accepted

–          Figure out if you make payments late

–          If a 3rd party collection company should be used for your account

–          Determine interest rates and insurance premiums

How can I build my PAYDEX score?

In order to build your score up you have to make your payments on time or early if possible. You can also add additional payment experiences to your D&B file that might not currently be listed.

If you have any questions or concerns about the payment experiences listed in your report you can call D&B at 1-800-700-2733.

 

If you have faced financing difficulties due to your PAYDEX score feel free to reach out to us. At Direct Capital we say yes to more borrowers with the widest credit window available.

 

 

 

One Comment on "Reviewing Your PAYDEX Score"

  1. Chris Young May 2, 2014 at 2:37 am ·

    Hi,

    Nice introduction to paydex scores. Your readers may be interested in learning a bit more about how paydex is calculated etc here:

    http://epsilonbusinesscredit.com/business-credit-ratings/understanding-your-business-paydex-score

    Chris

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