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Paydex Score
The Paydex Score is the business credit score equivalent to your personal FICO score, or personal credit score. As a small business owner you need to know what this number is. You also need to be aware of how to increase your Paydex Score. This will make the difference when seeking to obtain the financing needed to start or expand your business. If you do not manage your Paydex Score effectively, this can cost your business.
The Paydex Score definition from Dunn & Bradstreet,
or D&B is:
"The D&B PAYDEX® Score is D&B's unique dollar-weighted
numerical indicator of how a firm paid its bills over
the past year, based on trade experiences reported to
D&B by various vendors. The D&B PAYDEX Score ranges from
1 to 100, with higher scores indicating better payment
performance."
The higher the score the better.
Lenders consider a score above 75 to reflect a confortable
business to lend to. To get to a Paydex Score above 75
most business owners have six vendors reporting with at
least $15,000 in revolving credit. Please consult an
Underwriter on how to accomplish the minimal requirements. |
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