Everyone knows what a FICO score is. If you’re a business owner you better know what a Paydex score is and why it’s important these days. Paydex is the equivalent of a consumers FICO score. It measures your businesses credit worthiness and is being looked at more and more by lenders.
Business credit agencies use this business scoring system to determine the credit rating of small businesses. Dun & Bradstreet and Experian are two of the larger ones. You can simply sign up at www.dnb.com. You will be assigned a number and then it’s up to you to build your credit in a similar fashion as you would your FICO score.
Paydex scores range from 0 to 100. Anything 80 and above is good and where you must be in order to obtain business financing. Below 80, and just like a FICO score, you can have problems.