The main credit score used in the business world is the PAYDEX score from Dun and Bradstreet. This number assesses a business’s lending risk. It is much the same as a consumer credit score reflecting a consumer’s individual credit risk. PAYDEX is more or less the business equivalent of your personal credit score.

The exact definition from Dun & Bradstreet 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 between 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. 100 is the highest score you can get. Individual credit scores come from several factors. The PAYDEX score comes from one single factor. It’s if 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. A score of 80 or better is very good. If you own a business, your PAYDEX score is essential in establishing new credit and continuing to build credit limits exceeding $100,000. It only takes 60 days to establish a positive PAYDEX credit score. First, apply for a DUNS Number. This is a nine-digit business identifying number with Dun and Bradstreet. Once your DUNS number is established you should next find a merchant who will extend you credit and then report that credit to Dun and Bradstreet. Once you have a positive business credit report to Dun and Bradstreet you will have a positive PAYDEX score established. Then apply for more business credit and use it often. Make sure you pay back early to raise your scores to 80 or higher. You can easily and quickly establish a positive PAYDEX credit score. As you continue to pay your bills on time, your scores will continue to raise. This makes it possible to qualify for credit in your business name.

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