PAYDEX® Score Guide
Here is everything you need to know about the PAYDEX® Score.
PAYDEX® Score overview.
It is essential to have a good Dun and Bradstreet® PAYDEX® Score if you own a small business. It can make it easier for you to obtain financing for your company. Furthermore, a good PAYDEX® Score can help you get lower rates and favorable terms when applying for a small business loan, equipment financing, franchise financing, or one of the other types of business funding.
Many reports online indicate that up to half of all business owners do not know their business credit score or understand how it is calculated. Therefore, Balboa Capital created this helpful PAYDEX® guide with the information you should become familiar with.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
How is my PAYDEX® Score calculated?
Your PAYDEX® Score is based on your 12-month payment history to vendors, suppliers, lenders, etc. It is generated and reported by Dun and Bradstreet®. Simply put, if your small business pays its bills on time, it will have a higher score.
The score ranges from 0-100. A score of 90 or higher indicates an excellent payment history, and a score below 80 indicates that your bills were paid late. The score is dollar-weighted. This means the more extensive the bill, the more weight it will have on your score.
How do I get my Paydex score?
To get your PAYDEX® Score, you need to obtain a Dun and Bradstreet® number, also called a D-U-N-S® number. You can register online for your D-U-N-S® number on the Dun and Bradstreet® website. It is free and takes just a few minutes. You will need information about your company such as its name, physical address, telephone number, etc.
Once approved, you will receive your unique nine-digit identification D-U-N-S® number. If you have multiple business locations, you will need to get a number for each. Your D-U-N-S® number will establish your Dun and Bradstreet® credit profile, which determines your PAYDEX® Score.
Can I get financing with a low score?
A low PAYDEX® Score can prevent you from getting small business funding. Business lenders will evaluate your credit profile to measure your financial risk. Your business credit scores from the other two main credit bureaus will be looked at, too. That said, you have options with Balboa Capital. We consider all credit scores for each small business funding product we offer.
Resources for small business owners.
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Ameris Bank is not affiliated with nor endorses the companies referenced in the article.