Building Business Credit: What is a Paydex Score?

If you are trying to build business credit, you will need to be aware of what a Paydex score is and what it represents. Here are the basics of the Paydex score.

Paydex Score

A Paydex score is a numerical representation of your credit history. The Paydex score is created by Dun & Bradstreet, which is a credit bureau for the business world. The Paydex score is basically the business equivalent of the FICO score for individuals.

Application

This score is utilized in a number of different ways. Whenever you try to obtain a loan, the lender is going to look at your business's Paydex score before they make a lending decision. Insurance companies will evaluate this score when they are calculating your premiums. Equipment companies will check this score before they lease equipment to you. Even your landlord might pull this score whenever they are deciding whether they want to lease a building to you.

Scoring System

Even though this system is similar to a FICO score, it does not use the same scale. With the FICO score, you can go up to 850 points. With the Paydex system, the scale only goes from 0 to 100, with 100 being the best score. 

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