Paydex Score
Definition
The Paydex Score is a business credit score developed by Dun & Bradstreet that ranges from 0 to 100 and measures how promptly a business pays its bills relative to the agreed-upon terms. A score of 80 indicates payments are made on time (within terms). Scores above 80 indicate early payments, and scores below 80 indicate late payments. The Paydex Score is one of the most widely referenced business credit scores and is based solely on trade payment experiences reported to D&B. Building a strong Paydex Score requires establishing trade accounts with vendors that report to D&B and consistently paying on or before the due date.
Example
A business with five trade accounts that all report on-time payments to D&B has a Paydex Score of 80. By paying all invoices 15–20 days early for 6 months, their score increases to 90, making them eligible for better financing terms and higher credit limits.
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