What is a Paydex Score?

Trying to secure funding for your small business, but have bad personal credit? Don't worry. You can create a separate credit profile solely for your business by working to establish a Paydex score. Understanding what a Paydex score is, how it's calculated, and why it matters can help business owners obtain funding—even if their personal credit is poor.

What Is a Paydex Score?

The Paydex score is a credit score assigned to businesses by Dun & Bradstreet (D&B), one of the leading business credit bureaus. It's a score given to represent a company’s financial responsibility. Many lenders, suppliers, and vendors will use this score to assess the creditworthiness of a business before approving credit or financing applications.

Paydex scores range from 0 to 100, with higher scores indicating that a business has low credit utilization, and a history of making payments on time. Lenders typically like to see a strong Paydex score of 80 or above:

• 80 – 100: Excellent 

• 50 – 79: Fair to Good 

• 0 – 49: Poor 

Even if you have bad personal credit, maintaining a high Paydex score can improve your business’s ability to obtain financing. Having a high Paydex score signals that your business is financially reliable, making it easier for you to access business funding and to get higher credit limits, better repayment terms, and lower interest rates. Building a strong Paydex score ensures that your business credit profile stands on its own, reducing the need to rely on personal credit for business expenses. 

A high Paydex score is a powerful asset for small business owners, especially those with a low personal credit score. By building and maintaining strong business credit, you can access the funding you need to grow and scale your business without relying solely on your personal creditworthiness.

If you’re looking to build business credit, we've outlined a roadmap to make it easy for you to quickly establish your Paydex score:

3 Easy Steps to Build Your Business Credit

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