PAYDEX is somewhat synonymous with business credit report. Specifically, it is Dunn & Bradstreet's measure of a business's annual credit history. The score, which is calculated based upon information reported by vendors to Dunn & Bradstreet, can range from 1 to 100. The higher the score, the better.

One sure way to build business credit is to get and maintain a high PAYDEX score.

Steps to PAYDEX Success & Building Business Credit

• Become familiar with how the system works.
  Too often business owners mistakenly believe that paying bills before they are due is a sure way to earn a high PAYDEX score. Not true. To earn the highest score, your business needs to pay its bills even before the invoices are sent. This anticipatory payment pattern shows a company's sense of financial responsibility.
• Learn what the scores mean. One of the best ways to understand what the scores mean is to refer to Dunn & Bradstreet's key:
  

  Score	Credit Score Defined
  100	Anticipate: Payment details indicate that payments were received before invoice was sent.
  90	Discount: Payment details indicate that payments were received within the trade discount period
  80	Prompt: Payment details indicate that payments were received within the terms granted.
  70	15 Days Beyond Terms
  60	22 Days Beyond Terms
  50	30 Days Beyond Terms
  40	60 Days Beyond Terms
  30	90 Days Beyond Terms
  20	120 Days Beyond Terms
  UN	data unavailable

  
  
• Be able to correctly interpret the comments
  In addition to the numerical values, you may find written comments, usually in the form of abbreviations that further characterize your business's credit history and payment patterns. Here are the most common examples:
  
  1. Antic - Anticipated, which means payments were received before invoice was sent.
  2. Disc - Discount, which means payments were received within the trade discount period.
  3. Ppt - Prompt, which means payments were received within the terms granted.
  4. Slow, which means that payments were made beyond vendor's terms, i.e. payments are 30 days past due.
  5. Other possible comments:
     • Cash in Advance
     • Account in Dispute
     • Credit Refused
     • Placed for Collection
     • Seasonal Purchasing Pattern
• Make good use of business lines of credit
  Some creditors will give your business a line of credit even without personal guarantees or a PAYDEX score, which is a good way to get started as you begin to develop business credit. Then as you make anticipator payments, you will contribute to a high PAYDEX.

Take Advantage of United Business Credit's fee consultation.

United Business Credit can help you build business credit, secure small business loans, small business credit cards and business lines of credit. Our goal is to help your develop business credit that will last the lifetime of your business.

To get started right away, call now for a free consultation at 800-852-6104