You
probably have personal credit scores established,
and you are probably familiar with your
scores at Equifax, Experian, and Trans Union. But
do you have a Paydex business credit score yet? 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. 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 credit
score.
The Paydex Score ranges from 0-100 with 100 being
the highest score you can obtain. Having
a Paydex business score of 80 or higher is very
good, as scores below 70 are very bad. 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.
For
example, prompt payments will produce a Paydex
score of 80. A 70 score reflects paying 15 days
behind, 60 score is 22 days behind, a 30 score reflects
paying 90 days behind, and a 20 Paydex reflects
paying bills 120 days late. If
you own a business, your Paydex score is essential in
establishing new credit and continuing to build credit
limits exceeding $100,000. Call
me on my number below to start the process of
establishing your Paydex score and getting approved
for $50,000 in business credit this year with
no personal guarantee and regardless of your personal
credit quality.
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