What is the PAYDEX score?
PAYDEX® is Dun & Bradstreet's business payment score. According to D&B, it measures a company's past payment performance on a scale of 1 to 100, where 100 is the best possible score.
D&B calculates it from trade experiences: records of payments that suppliers and vendors submit to Dun & Bradstreet, which D&B reviews and verifies. The score belongs to the company's D&B file, which is identified by its D-U-N-S number, not by the owner's Social Security number. That is why a free D-U-N-S number comes before any vendor account.
What the PAYDEX ranges mean
Dun & Bradstreet groups PAYDEX scores into three risk categories:
- 80 to 100: low risk of late payment
- 50 to 79: moderate risk
- 0 to 49: high risk of late payment
A score of 80 generally reflects paying on time, as agreed. Scores above 80 reflect paying ahead of the due date, and scores below 80 reflect paying late. D&B notes that scores of 80 and above are considered low risk and can add to a business's credibility with creditors.
What PAYDEX measures, and what it doesn't
PAYDEX looks at when the company pays compared with the terms it agreed to. Paying a Net 60 invoice on day 60 counts as on time, the same as paying a Net 30 invoice on day 30. Longer terms add buying power, but they don't raise the score by themselves.
PAYDEX is one part of a D&B file. D&B also publishes other scores and ratings, and other bureaus such as Experian and Equifax keep their own business files and scores.
How a new business gets a PAYDEX score
A new company has no PAYDEX until payments are reported to its D&B file. D&B is clear that payment experiences that go unreported can't be considered when it calculates a business's scores. Many vendors never report, so it matters which accounts the business opens.
The usual order is: uniform business records, a D-U-N-S number, then Net 30 vendor accounts that report, paid on time, every time.
How to build or improve a PAYDEX score
Dun & Bradstreet names two of the most effective steps: pay bills on or ahead of time, and make sure suppliers and lenders report those payments to D&B. In practice that means:
- Open accounts with vendors that report to D&B, and confirm reporting before you apply.
- Pay every invoice on or before the due date. Early payment is reflected in scores above 80.
- Keep the company's legal name, address, and phone identical everywhere, so payments land in the right file.
- Review the file regularly so you can spot missing or misattributed payments.
- Be patient. A score reflects history, and history takes time to build.
Who looks at a company's PAYDEX
According to D&B, customers, suppliers, lenders, and landlords review PAYDEX scores to decide whether to do business with a company and on what terms. Anyone can buy another company's D&B report through a subscription, and you can review your own scores by purchasing a D&B monitoring product.
If you are thinking about a future loan, read our loan readiness guide on what lenders typically review.
Common questions
What is a good PAYDEX score?
Dun & Bradstreet considers 80 to 100 low risk. A score of 80 generally reflects paying on time, as agreed, so 80 or higher is the usual target.
Is PAYDEX the same as my FICO score?
No. D&B describes PAYDEX as roughly the business equivalent of a personal FICO score, but it is a separate score about the company's payments, kept in the company's D&B file.
Can my business have a PAYDEX score without a D-U-N-S number?
No. The PAYDEX score lives in the company's D&B file, which is identified by its D-U-N-S number. The D-U-N-S number itself is free from Dun & Bradstreet.
Sources
- Dun & Bradstreet: Business Credit Scores & Ratings
- Dun & Bradstreet: What is a PAYDEX Score?
- Dun & Bradstreet: Get a D-U-N-S Number
Want to know where your business stands?
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