The Dun and Bradstreet PAYDEX Business Credit Score
The PAYDEX score from Dun & Bradstreet (D&B) is one of the primary credit scores used in the business world. It measures a company’s lending risk in much the same way that a personal credit score reflects an individual’s creditworthiness. Essentially, the PAYDEX score serves as the business equivalent of a personal credit score.
According to Dun & Bradstreet, the PAYDEX score is a unique, dollar-weighted numerical indicator of how a business has paid its bills over the past year, based on trade experiences reported by various vendors.
There are significant differences between a business PAYDEX score and an individual FICO credit score. While FICO scores range from 350 to 850, the PAYDEX score is measured on a scale of 0 to 100, with 100 being the highest possible score. FICO scores are calculated using multiple factors, but the PAYDEX score is determined by one factor: whether a business pays its suppliers and creditors on time—or even earlier—within the agreed-upon payment terms.
Lenders and suppliers generally look for a PAYDEX score of 70 or higher, and a score of 80 or above is considered excellent. A strong PAYDEX score is critical for businesses seeking to establish new lines of credit and build credit limits of $100,000 or more.
Establishing a positive PAYDEX score is straightforward and can take as little as 60 days. The first step is to apply for a DUNS Number, which is a unique nine-digit identifier for your business issued by Dun & Bradstreet. After obtaining a DUNS Number, find vendors or merchants who will extend credit to your business and report your payment activity to D&B.
Once these positive credit reports are recorded, your PAYDEX score will be established. To strengthen your score, continue applying for additional business credit, use it responsibly, and make early payments whenever possible. An 80+ PAYDEX score demonstrates excellent payment behavior and increases your business’s ability to qualify for substantial credit.
By maintaining consistent, on-time payments and adopting good credit habits, your PAYDEX score will grow, opening doors to greater financial opportunities in your business’s name.
