It is the same as a FICO score. The paydex score is invented to show the worth of your business. The score keeps an eye on the frequency of your payment to your suppliers and vendors. It also maintains the information collected by Dun and Bradstreet from such companies. The range of the paydex score is from 0 to 100. If you get a higher score, it means that your company has a good payment record. An ideal score for your business is 80 or above. This score means that you make timely payment of your business’s expenses. However, if you get more than 80 scores, then it means that your company makes early payment of its costs.
Why paydex score is important
If you are anxious about the paydex score, then probably you don’t know about it. You can consider this as a personal credit score. As your credit score can influence your eligibility to apply for a loan at a suitable rate, business credit score can also impact your business’s capability to obtain credit at appropriate terms.
Besides, suppliers, insurance companies, landlords, etc. may also check your paydex score. Some of the decisions that may get affected by your paydex score consist-
An insurance firm settles your premium by checking your paydex score.
A landlord decides to rent you his property by seeing your score.
Suppliers or vendors decide whether or not to work with your firm by seeing your score.
Remember that your paydex score is crucial if you are going to get an SBA loan for your business. Generally, it can aid cost or save you money and may decide who wants to work with your corporation, comprising lenders or suppliers.
Conclusion
Being the owner of an established business, you need to record loads of things; however, you will have to ensure that your company has a good business credit record. A strong paydex score indicates to all the lenders and suppliers that you make all your payments on time. That will persuade them to continue or start working with your company, which can ultimately aid you in keeping up and develop your company.
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