Everything You Need To Know About The Paydex Score

 Loan approvals can be a difficult decision for lenders and banks to make. The increasing amount of financial fraud has already made them skeptical about loaning out their money. During the third quarter of 2019, only 27.9% of loan requests were approved.

As a business owner, your financial numbers should be as transparent as possible to build trust with lenders and improve your company’s overall reputation. A Paydex score is a single value that highlights your company’s financial position. Here’s everything that you need to know about it.

 

Four employees from a corporate service company in the US discussing how to improve the Paydex score

What Is a Paydex Score?

For consumers, the FICO score helps in measuring their creditworthiness. For firms, a Paydex score is a way to measure their creditworthiness. The score is generated by a data analytics company named Dun and Bradstreet.  The company collects payment data from your suppliers, including the overall dollar value of those payments, how timely the payment was, and the number of payments made in 12 months.

The main factor in determining the Paydex score is the promptness of the payments, so the earlier you pay, the higher your score is. The score ranges between 1-100, where you get a score of 100 if you pay 30 days in advance and get a score of 1 if you delay payments by three months or more.

Why Is the Paydex Score Important?

The Paydex score is crucial as it provides lenders and vendors insight into your company’s financial capability. The better your Paydex score, the higher your chances are to get financing. Moreover, rather than carrying out your research and investing time and resources into calculating credit scores, the Paydex score offers an easy way out for your company to showcase its creditworthiness.

The increasing importance of the Paydex score makes it essential for companies to improve it. Since the score is based on timely payments, the best way to improve is by regularly making timely or early payments.

Two business partners happy after seeing an improvement in their Paydex score

Optimize Your Paydex Score Now

The importance of a high Paydex score is massive for your company’s growth. If you’re looking to improve your Paydex score, visit Corporation4Less now. They provide expert corporate services in the US, and their team of professionals analyzes your company’s financial situation.

They also offer a wide range of other services, including register a company in usa, aged corporation with credit in fifty US States, and credit restoration.

Reach out to them today for more information.


Location: United States

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