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What is Paydex? – MyFinanceInsurance

by Shagun Saini
What is paydex

Do you know What is Paydex? As establishing a Paydex score and maintain a good one is important for a business or a company. As, it holds the trust of potential partners, lenders, suppliers, and vendors in your business. A solid PAYDEX score can help you build your company’s reputation. But, do you know what is paydex? And why it is necessary? Let us know paydex and its importance for the companies as well as for the lenders, suppliers, and vendors in your business.

What is Paydex?

A paydex is basically a score that is assigned by a company known as Dun & Bradstreet or d&b company to other companies. This d&b paydex tells us about the rating of the company and whether the company will be able to pay its suppliers or vendors on time.

Therefore, paydex is a business credit score having a range of 0 to 100. A higher score tells us higher the reliability to pay off the amount to suppliers or vendors. So, the Lenders and vendors use the business paydex score to know the details related to loan eligibility, interest rates, and repayment terms.

Although, paydex score is much similar to the FICO credit score, where consumer credit is traced down.

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How Is the Paydex Score Used?

Small business lenders, suppliers, and vendors use the paydex score to know your trustworthiness of repaying your debts. Even if you want to open up a business, or doing business with a business partner may also look up to your PAYDEX Score to determine your reliability and worthiness. So, maintaining a higher score means that you are a lower risk borrower and this gives you a preference over the other lower score holder than yours.

How to Improve the D&B Paydex Score?

In order to improve your dun and Bradstreet paydex score, you should try to pay your debts as sooner as you can as this score is entirely based on your payments to vendors and suppliers. And to maintain a perfect score of 100 you need to pay early as a pay dex score of 80 can also be scored by making payments on time.

And for having a paydex score you should firstly have at least three open trade lines. Otherwise, it will be considered that you don’t have a paydex score at all. And having no paydex score is also a bad sign, just like having a low paydex score.

How to Calculate the Paydex Score?

Dun & Bradstreet collects all the trade and credit related information from the vendors and suppliers for a period of 12 months, which is analysed to create a score. There are many companies that report to paydex, where the promptness of your payments is noted down to create the paydex company score.

Here, a different paydex score depicts your consistency in making payments to the supplier.

Meaning of Different Paydex Scores:

The table shown below depicts your paydex score in terms of your payment history. This table tells us that if you pay all your bills within a period of 30 days in advance then you maintain a good paydex score of 100, likewise, you delay your payment advance days your paydex score decreases. Try to maintain a score of 80 where the vendor and supplier consider it as a good option.

Paydex ScoreUsual days to make paymentPaydex scoreUsual days to make payment
100 30 days early 59 23 days late
99 29 days early 58 24 days late
98 28 days early 57 25 days late
97 27 days early 56 26 days late
96 26 days early 55 26 days late
95 25 days early 54 27 days late
94 24 days early 53 28 days late
93 23 days early 52 29 days late
92 22 days early 51 29 days late
91 21 days early 50 30 days late
90 20 days early 49 33 days late
89 18 days early 48 36 days late
88 16 days early 47 39 days late
87 14 days early 46 42 days late
86 12 days early 45 45 days late
85 10 days early 44 48 days late
84 08 days early 43 51 days late
83 06 days early 42 54 days late
82 04 days early 41 57  days late
81 02 days early 40 60 days late
80 Pays on time 39 63 days late
79 30 days early 38 66 days late
78 2 days early 37 69 days late
77 3 days early 36 72 days late
76 5 days early 35 75 days late
75 7 days early 34 78 days late
74 9 days early 33 81 days late
73 11 days early 32 84 days late
72 12 days early 31 87 days late
71 14 days early 30 90 days late
70 15 days early 29 93 days late
69 16 days early 28 99 days late
68 17 days early 27 96 days late
67 18 days early 26 102 days late
66 19 days early 25 105 days late
65 19 days early 24 108 days late
64 19 days early 23 111 days late
63 20 days early 22 114 days late
62 21 days early 21 117 days late
61 22 days early 20 120 days late
60 23 days early 1 – 19 Over 120 days late

How to Check Your Paydex Score?

By purchasing a business credit report from Dun & Bradstreet, you can check paydex score where you will receive an update from the company which will depict the changes in your score. Where a copy of your credit report can also be purchased by the Lenders, suppliers, vendors, competitors, and potential business partners to know your score. Thus, to check paydex score you need to purchase the report of D & B company.

What Is a Good Paydex Score?

A high score is considered as a good paydex score which signifies a low-risk business that is covered in the range of 8 to 100. So, a score between 80 to 100 is considered as a good paydex score.

Frequently Asked Questions

  • How do you get a paydex score?

By paying your debts and payments on time you can get a paydex score further you should also hold at least 3 credit experiences or open trade lines to hold a paydex score, otherwise, it will be considered as you do not have any paydex score.

  • What is considered a good paydex score?

A high score is considered as a good paydex score which signifies a low-risk business that is covered in the range of 8 to 100. So, a score between 80 to 100 is considered as a good paydex score.

  • What is paydex declined?

Paydex declined means that there’s a greater risk associated and the company will fail to pay off its debts, which is based on the information collected by Dun & Bradstreet.

  • How many payment experiences make up a paydex score?

You need at least 3 credit experiences or open trade lines.

Conclusion:

Always focus on maintaining a good paydex score to increases the trust of others such as potential partners, lenders, suppliers, and vendors in your business. A solid PAYDEX score can help you build your company’s reputation. Thus, by now you know what is paydex and its importance for lenders, suppliers, and vendors.

the reliability to pay off the amount to suppliers or vendors. So, the Lenders and vendors use the business paydex score to know the details related to loan eligibility, interest rates, and repayment terms.

Although, paydex score is much similar to the FICO credit score, where consumer credit is traced down.

In this article, we have successfully explained What is Paydex.

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