Getting And Growing Your Business's Paydex Score

By Author: William Brewer
Total Articles: 6
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Are you familiar with the PAYDEX number and how its score can help you with your business’s financing?

“What Is A PAYDEX Number?”

In short, the PAYDEX score is a “unique, dollar-weighted numerical indicator of your business’s credit worthiness, calculated and maintained by Dun & Bradstreet.”

In my last blog post, we talked about business equipment financing and how the underwriting process has become increasingly thorough. We also looked at how and why you should check your credit score and dispute any issues.

Why You Should Care About A PAYDEX Rating

The PAYDEX score is another way to increase your chances of success, when looking at different commercial lending opportunities.

In fact, banks and your suppliers are likely to request both your credit score AND your PAYDEX rating as part of the decision-making process.

Here are 5 steps you can take to getting and growing your business’s PAYDEX score:

Step #1 To Establish A PAYDEX For A Business: Register Your Business

The first obvious step is to establish a legitimate business ...
... entity...

Apply for your business license from the required state and federal agencies, and register your business with services such as Yellow Pages.

In short, you want to build your credibility as an established business, BEFORE you contact Dun & Bradstreet.

Step #2 To Establish A PAYDEX For A Business: Apply For Your D-U-N Number

You can almost think of your D-U-N number as something similar to your social security number for personal matters.

However, the D-U-N number is simply your business’s ID as you work through building relationships with your lenders and suppliers.

Applying for a D-U-N number is free and is required before you can be assigned a PAYDEX score.

To apply for free, visit the Dun & Bradstreet website.

Step #3 To Establish Your PAYDEX Number: Apply For Credit

Once you’ve applied, it’s time to start increasing your PAYDEX score by applying for credit.

You can either apply for vendor credit with suppliers like OfficeMax, FedEx, and Staples...

...or apply for a small business credit card for your business.

Just be sure to keep your business credit and personal credit separate!

Step #4 To Establish Your PAYDEX Number: Pay Your Bills - On Time!

It’s simple advice, but paying your bills is the only truly reliable way to build your credit rating and improve your PAYDEX score.

In fact, if you can, try to pay your bills early...

You should also try to focus on doing business with vendors and suppliers that regularly report to the major credit bureaus. If you can find any that report on a monthly basis, you may want to strongly consider going with them.

Regular updates are critical to ensuring your credit report will be an accurate, current reflection of your business’s payment history and overall responsibility.

Step #5 To Establish Your PAYDEX Number: Check & Monitor

Just like your normal credit rating, it’s important to regularly monitor your business’s PAYDEX score.

As long as you are paying your bills on time, within 6-12 months, you should start to see your PAYDEX score improve!

For more commercial lending advice and professional guidance to grow your business, visit ibfcommercialloans.com today.

William Brewer is the founder and CEO of Industrial & Builders Finance, LLC., a company that helps business owners with any credit status find the capital they need to start, grow, and expand their business. Bill and his experienced team can help you get money for your business, the fast and easy way. Visit http://ibfcommercialloans.com to learn more about how you can get financing for your business today.