All You Need To Know About Paydex Score



A Paydex-Score is a business’ proprietary score assigned by Dun & Bradstreet intended to highlight a business’ creditworthiness. It is technically, a business’ credit score scaled numerically from 0 to 100. The Paydex Score is similar to an individual’s credit score except that the latter ranges between 300 and 850. 

 

Understanding the Paydex Score Scale  

On a scale of 0 to 100, Dun & Bradstreet rates the likelihood that a business will repay its debts to suppliers and other creditors on time. High figures on the scale represent a greater propensity to repay the debt on time or sooner than the scheduled repayment period, while a lower amount represents the higher risk group. 

Dun & Bradstreet is among the major credit reporting agencies, alongside Equifax and Experian. The bureau also reports companies’ credit cards report, delinquency predator scores, credit limits recommendations, failure scores, etc. The ratings are based on payment records submitted to the agency by suppliers and vendors subject to Dun & Bradstreet’s verification. Among the records that weigh in on your credit score include overdue debts and bills sent for collections, timely payments, and those paid before schedule. The agency includes submissions from up to 875 individual associates to determine your business’ credit score. 

 

What Influences changes in your credit card score?

Your Paydex score improves when data available to the agency suggest that your company is in a better position to repay its debts on time. If your business’ Paydex score decreases, the trade references available to the agency indicate that your business is neglecting its debts and is gradually joining the high-risk group. 

Unfortunately, you cannot fix your poor credit score overnight. It is a process that involves paying your debts on time and encouraging your creditors to share your payment experience with Dun & Bradstreet to be included in the calculation considering unreported payments cannot be considered in the calculation. 

 

Who can access your Paydex Score?

Your Paydex Score is available to anyone from suppliers, lenders, and other creditors that want to determine your history of debt payment and the likelihood that you’ll repay your debts on time. Your landlord can also request your Paydex Score before extending you the lease agreement. Insurers as well use your credit score to set your insurance premiums. 

As you may notice, your Paydex Score directly affects your likelihood of transacting with key business associates. Low-risk borrowers can negotiate for favorable credit terms, big loans, and even lower interest rates. 

 

 

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