How to Achieve an 80 Paydex Score with Dun & Bradstreet®…

Build business credit is critical to help build creditability and fundability with your company. One of the key first steps (after a compliance review) is developing an 80 Paydex score with Dun & Bradstreet®. The Paydex scoring system goes from 0-100. It is one of many scoring models used by Dun & Bradstreet®. It is not as important as the Dun & Bradstreet rating for your business, but an important start.

In order to achieve an 80 Paydex score with Dun & Bradstreet® you must have three vendors (used to be five) who report you have paid your bill on time to Dun & Bradstreet.  That will give your business an 80 Paydex score. Sounds simple? Not so fast. Unfortunately, there are over 50,000 vendors that grant vendor credit but only less than 10% take the time or invest the money to report to Dun & Bradstreet.  It is possible that even if you have been in business for 5 years and have paid all your vendor bills on time, the business may still NOT have an 80 Paydex score.

The only way to achieve a Paydex score higher than 80 is to actually pay your vendors on a net 10 terms (with a usual term of 30 days) at a 1% discount.  Next, those vendors would have to report that early payment to Dun & Bradstreet®. This rarely happens and this is why you will rarely see a Paydex score over 80.

Questions? Looking to build business credit for your business and looking to avoid costly mistakes? Contact Fast Business Credit, Inc. at 1-888-313-6333 for a complete diagnostic review of your current business and options to gain access to vendor and cash lines of credit.