The Business Credit and Financing Guide
Dun & Bradstreet Business Credit Scores Dun & Bradstreet provides two Performance Credit Scores. These scores reflect a company’s past performance using only information in the D&B database. D&B’s two core Performance Scores are PAYDEX Score and D&B Rating. ●● The PAYDEX Score – Shows how a company has paid its bills over the last 24 months. ●● The D&B Rating – Indicates a company’s net worth range based on company financial statements. It also shows a company’s overall condition.
various vendors”.
The most popular credit score used in the business world is the PAYDEX score, from Dun and Bradstreet. From D&B: “The D&B PAYDEX® Score is D&B’s unique dollarweighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by
“Dollar-weighted” means D&B gives more weight to accounts with higher limits than ones with lower limits. PAYDEX gives more weight to trade accounts reporting higher amounts of credit extended. And it gives less weight to trade accounts reporting lower dollar amounts of credit. “How a firm paid its bills over the past year”, means this score comes from past performance as the main driver. It’s simply based on how you paid your bills. The score ranges from 1 – 100. Higher scores are lower risk as they predict better payment performance. Any score of 70 and higher D&B defines as a good score. An 80 score reflects prompt payment. D&B’s definition: “D&B Rating is a performance score based on a company’s net worth from its financial statements as well as an overall credit assessment using information in D&B’s database.” The D&B Rating indicates a company’s net worth range. This comes from company financial statements, as well as a company’s overall ©️2022 The Distributor of this e-Book, all rights reserved . No reproduction or use of any portion of the content or work or the entire work is permitted without the express written permission and authorization of the publisher . However , the publisher of these materials routinely grants authorization for reproduction or use of this work , in whole or in part. If you would like to use any portion of this material in a book, article, e-zine, newsletter, radio, or television broadcast, podcast or in any other seminar teleconference or other events or publications please email or call the distributor of this guide.
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