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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: Luis Alvarez/Getty Images April 08, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Highlights Investigative and political journalism Delivered on-the-ground news Newscast Production Experience Dignelly is an Associate Editor for CreditCards.com where she is dedicated to updating information for readers. She obtained her master’s degree in broadcast and digital journalism from Syracuse University in New York. During that period, she gained a variety of experience from her time interning with Tampa Bay’s NBC News affiliate station WFLA-TV News Channel 8 and their Spanish digital news outlet Tampa Hoy. Dignelly’s interest in finance has brought her here to join our news and advice team from Puerto Rico. She is committed to keeping you informed and updated with the latest financial news and information. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo

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What is a Paydex score

A Paydex score is a , similar to your own personal credit score. It is issued by and represents how likely it is that your business will pay vendors and suppliers on time. While your personal credit score ranges from 0 to 850, your Paydex score is . A higher Paydex score indicates you are more likely to pay bills on time or even in advance. If your score is above 80, it means that, based on your payment history, you are considered to be low risk.

What factors impact your Paydex score

Unlike your personal credit score, which is based on a variety of factors, your business Paydex score is dependent solely on your . Trade References are your payment experiences with vendors and suppliers that are registered with Dun and Bradstreet by the vendors and suppliers themselves. It’s important to note that Dun and Bradstreet does not consider to be Trade References. To properly calculate your Paydex score, Dun and Bradstreet recommends you have a minimum of four Trade References on record. Only transactions from the previous two years are used when determining your business score.

Recent larger credit matters more

Since the Paydex score reflects the current likelihood of your business making payments on time, recent Trade References carry more weight than older ones. The size of payments made or owed to vendors and suppliers is an important factor as well, with larger payments having a greater impact than smaller ones. For example, being late on a $5,000 payment will have a much greater effect on your Paydex score than being late on a $300 payment.

Improving your Paydex score

The primary way to improve your score is to make payments in a timely manner. Negotiating longer terms with vendors and suppliers can be very helpful, as it makes it easier for you to make payments on time or early. For example, if you only have a 10-day window to make a payment, you may have issues if finances get tight, resulting in a late payment and a negative experience on your record.

How is Paydex score used

The Paydex score is used by a variety of people and organizations to help them decide whether they want to work with your business. Financial institutions will use your score to determine whether to lend you money and what terms to give you. Insurance companies examine your score when deciding premium amounts for your business. Landlords may check your score when deciding whether to accept you as a tenant. And, of course, suppliers and vendors will look at your score before agreeing to engage with your business. With these things in mind, it is in the best interest of your business to keep your Paydex score as high as possible. A low score can hamper your growth and make it difficult for you to do business.

What do different Paydex scores mean

The lower a business Paydex score, the higher the risk of late payment it represents to a lender. 80-100: Low risk 50-79: Medium risk 0-49: High risk The following table shows you what each Paydex score means in terms of your payment history. Keep in mind, you don’t need to have an absolutely flawless score. That would mean you pay all your bills 30 days in advance, which few, if any, businesses can actually do. As long as you keep your score at 80 or above, it shows vendors and suppliers that you pay your bills on time. Paydex Score Average days to make payment Paydex score Average 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 8 days early 43 51 days late 83 6 days early 42 54 days late 82 4 days early 41 57 days late 81 2 days early 40 60 days late 80 Pays on time 39 63 days late 79 2 days late 38 66 days late 78 3 days late 37 69 days late 77 5 days late 36 72 days late 76 6 days late 35 75 days late 75 8 days late 34 78 days late 74 9 days late 33 81 days late 73 11 days late 32 84 days late 72 12 days late 31 87 days late 71 14 days late 30 90 days late 70 15 days late 29 93 days late 69 16 days late 28 96 days late 68 17 days late 27 99 days late 67 18 days late 26 102 days late 66 19 days late 25 105 days late 65 19 days late 24 108 days late 64 19 days late 23 111 days late 63 20 days late 22 114 days late 62 21 days late 21 117 days late 61 22 days late 20 120 days late 60 22 days late 1 – 19 Over 120 days late

The bottom line

If you want to run a successful business, you need to keep tabs on your Paydex score. It influences everything from securing financing to obtaining supplies to . The good news is that if your business credit score is lower than you’d like, you can work to raise it. Making payments on time or early, especially on your , will move the needle in the right direction. SHARE: Highlights Investigative and political journalism Delivered on-the-ground news Newscast Production Experience Dignelly is an Associate Editor for CreditCards.com where she is dedicated to updating information for readers. She obtained her master’s degree in broadcast and digital journalism from Syracuse University in New York. During that period, she gained a variety of experience from her time interning with Tampa Bay’s NBC News affiliate station WFLA-TV News Channel 8 and their Spanish digital news outlet Tampa Hoy. Dignelly’s interest in finance has brought her here to join our news and advice team from Puerto Rico. She is committed to keeping you informed and updated with the latest financial news and information. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer.

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