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How Do I Get My PAYDEX Score & How Do I Improve It?

Your PAYDEX Score


Your business payment performance is determined by the PAYDEX score generated by Dun and Bradstreet which have numerical scores that range from 1 to 100, with 100 means a perfect payment history.

PAYDEX score is used to gauge whether a business is qualified for any kind of financing products. Lenders and vendors credit worthiness is determined through their PAYDEX score.

A higher score signifies greater chances of financing approval and better payment terms. Plus with extended payment terms, your business can save money, have more time to pay for services among others, and get a balanced cash flow.

High risk merchant account holders will be used to these kind of rigorous financial status checks


Getting your PAYDEX score

First, your business must be registered with Dun and Bradstreet and apply for a D-U-N-S number. Dun and Bradstreet will require your business to have a minimum of 4 trade references for a PAYDEX score to be assigned to your business (if you have multiple businesses, your PAYDEX score will be should be designated to your business headquarters.)

These trade references were payments your business made with a payment schedule to vendors or suppliers, so Dun and Bradstreet can verify if these payments were made on time or late.

Dun and Bradstreet will gather data and trace back your trade references up to 2 years from suppliers and/or vendors. Moreover, all trade history will remain in your Dun and Bradstreet file.


How to check your PAYDEX score

Monitor your business credit score by purchasing a credit report from Dun and Bradstreet. At the same time, you will get insights and tips on how to improve your credit score for better vendor terms.

You will also receive notifications or alerts for any changes in your PAYDEX score. Along with your PAYDEX score, you can also view your competitors’ credit score.

Vendors, suppliers, competitors, business partners, and potential investors can also view your PAYDEX score. That way, they will better understand your business and financial status. Also, your PAYDEX score will determine your eligibility for business loans, opportunities, and future business partnerships and funding. Hence, you pay more attention when it comes to paying your bills on time.

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How to improve your PAYDEX score

Whether you want to improve or maintain your PAYDEX score, the foremost thing to remember is to pay on time. But there are other steps that you can take to protect your PAYDEX score:

  • Paying your bills on time will only get you a score of 80. If you aim to get a PAYDEX score of 100, then you should pay early.
  • Ask your vendors and/or suppliers to submit your payments report including on time and early payments to Dun and Bradstreet to boost your PAYDEX score.
  • Always separate your personal purchase from your business account. Late payments made from your business account for a personal purchase can greatly impact your PAYDEX score.
  • Sign-up with Dun and Bradstreet even if your business is just starting up. This will establish your eligibility while you continue to expand your business.
  • Sign-up for score alerts to monitor your progress and see changes that might negatively affect your PAYDEX score.

Paying your bills on time is a basic yet necessary practice to build trust among your business peers. It is not only essential for business relationships but also important so that you can come up with a positive PAYDEX score.

( Merchant Account Specialist )

Mitchell Fardell is a highly experienced payment processor who has worked for First Card Payments since 2019. In that time, he has worked on large accounts, small accounts, and everything in between.

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