Some small business owners mistakenly believe that they should have the highest possible Paydex score because they pay their bills before the due date. This is incorrect.

The fact is that he highest scores are awarded to small businesses that pay the bill prior to the invoice being sent from the vendor. This type of payment pattern is called an "anticipatory" payment pattern. The small business anticipates the payment is due before the actual invoice arrives and pays it regardless. A small business that includes this character demonstrates the highest responsibility a company can display. This earns very high points for a small business.

The following D&B key will help you, as a small business owner gain a clear undestanding of how to interpret the PAYDEX Score.

Key to the D&B PAYDEX® Score

PAYDEX PAYMENT SCORE

100 - Anticipate - Payment detail may state: payments are received prior to date of invoice (Anticipated)

90 - Discount - Payment detail may state: payments are received within trade discount period (Discount)

80 - Prompt - Payment detail may state: payments are received within terms granted (Prompt)

70- 15 Days Beyond Terms

60- 22 Days Beyond Terms