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The PAYDEX score is Dun & Bradstreet’s unique dollar weighted numerical indicator of how a business pay its bills, based on the trade experiences reported to Dun & Bradstreet by various vendors/lenders.
In the business world the main credit score used is called PAYDEX score from Dun & Bradstreet.
This number assesses a business’s lending risk.
PAYDEX is like the business score equivalent to your personal credit score.
There are many differences between a business PAYDEX credit score and an individual FICO credit score.
FICO credit scores range from 350-850.
PAYDEX credit score range from 0-100.
Personal credit scores are based on 5 factors:
-Payment history- 35% -Utilization- 30% -Credit mix- 10%
-Length of history- 15% -Accumulation of new credit-10%
Looking for ways to increase your personal credit? Go to 3 Resources to Building Personal Credit Scores.
The PAYDEX credit score is based solely off 1 factor, payment history.
Most lenders/vendors are looking for a score of 70 and higher. A score of 80 or higher is very good.
If you own a business, your PAYDEX score is essential in establishing new credit for your business and continuing to build credit limits exceeding $100,000 and receiving loans.
It takes approximately 60 days to establish a positive PAYDEX credit score.
First apply for a DUN’S number with Dun & Bradstreet. This is a nine-digit business identifying number with Dun & Bradstreet.
Once your DUNS number is established, next find a merchant who will extend you credit and report that credit to Dun & Bradstreet.
Once you have positive business credit reporting to Dun & Bradstreet you will have a positive PAYDEX score established.
Then apply for more business credit and use it often. Make sure you pay early to raise your PAYDEX score to 80 or higher.
For a FREE 4- Step Guide On Building Business Credit and to receive tips periodically on how to build business credit go to www.exclusiveprocessingandconsulting.com
About the Author
Kimberly Lewis is currently the CEO of EPC Solutions LLC. She specializes in helping business owners establish excellent business credit scores and then leveraging those scores to access credit and cash for their businesses. For more information on business credit scores, business credit and business loans visit https://epc-solutions.net.