The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet. This number assess a business’s lending risk much the same as a consumer credit score reflects a consumer’s individual credit risk.
Paydex is essentially the business equivalent of your personal credit score.
The exact 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.
There are many BIG differences from a business Paydex credit score and an individual FICO consumer credit score.
Consumer FICO credit scores range from 350-850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain. Individual credit scores are calculated based on a number of factors.
The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.
Most lenders and suppliers are looking for a score of 70 and higher. Having a score of 80 and above is very good.
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