Why is a Paydex score relevant for your business?

 

Paydex score

When you enter the world of business, you need to understand many of the market terms. Some of them may be specific terms used by members of a particular trade, while others may be of a generic nature. Knowing them is the first stage in understanding their application in the world of business.

 

If you have a plan for your business, it will most certainly involve credit at some point in time. For accessing credit for your firm, you will need to pass minimum thresholds as specified by the financial institution. One of these is called the Paydex score. So, what is a Paydex score? Well, in layman's terms, it is a rating given to your business by the Dun & Bradstreet agency based on your payment performance to creditors. If you want to know more about this concept, you can just visit our website for a lucid explanation. For getting a real shot at credit from banks and credit unions, you need a score of 80 or above. Such a score signifies that you make your payments on time, or well before the due dates. The score is generated as soon as your suppliers start submitting information to the rating agency. 

 

Best payment practices for businesses

 

At our agency, we advise clients on how to access bank credit in a short time by the use of shelf corps. After buying a shelf corp, you need to open an account with the bank of your choice. Using that account wisely is what we teach you to do so that you can get an 80 Paydex score for your firm and move onto the next step of the credit process. If you ask us, the score is like a character certificate for your firm. You need the rating agency to certify that your firm always makes its payments before the agreed date. Thus, you need to do what it takes to make payments to your creditors, even if it means using credit cards to do it. The reason for this is that once you make a late payment, it takes time to rectify the rating. Also, accessing credit becomes more difficult if your rating reduces below 80. At the start, you should only take on debts that you can service, and make small purchases. If you stay patient, there are high chances that your credit needs will be fulfilled.

 

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