This article was written for the existing or aspiring small business owners and should answer at least some of the questions I’ve got concerning the Paydex score. In a nutshell, Paydex is a numerical value that ranges from 0 to 100 and is used by Dun & Bradstreet, a credit reporting agency that is also known as D&B, to evaluate the business credit history of the companies.
The Dun & Bradstreet agency collects information from businesses, banks and other organizations about the transactions that are performed pretty much anywhere in the world, and then computes a score (the Paydex score) which shows if a company pays its vendors (its bills) in a timely manner or not.
A good Paydex score starts around 75; while the amount of years you’ve been in business plays an important role as well, a Paydex score of 80 or higher will make it much easier for your company to get lines of credit, loans, business credit cards, and so on, even if it’s only been in business for a few years. If your company is brand new or if it doesn’t have a good Paydex score yet, you can boost the score up quite a bit by buying products from companies that give out credit easily, and then paying them on time, each and every time - sooner the better, of course.
I can’t stress this enough: pay the bills as quickly as possible, because your Paydex score decreases each time you delay the payments. If you really can’t afford to make a certain payment, try to contact the vendors and ask them if it’s possible to delay the payment by a few days, offering them an alternative option. On the other hand, paying the invoices before their due date each and every time will boost your credit score each and every time, helping it reach values that are as high as 90.
Poor Paydex credit scores of 70 or lower will prevent your company from having access to credit lines, so it’s best to wait until your credit score reaches a value of 75 before contacting a business financing company. Compound Profit offers a proven, affordable business credit builder program which was used successfully by about 100,000 entrepreneurs; contact us today for a complimentary consultation and discover how you can get a good Paydex score in only 4 months – guaranteed!
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business credit, business credit builder, Paydex
business financing, business credit, business credit builder, business credit cards