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Paydex is a term used in business, for a numerical score granted by Dun and Bradstreet to business as a credit score for the promptness of their payments to creditors. The Paydex score is used for commercial organizations in a manner similar to the way the FICO score is used for individuals.[1]

While credit scores for individuals, or non-business entities take a number of factors into consideration, Paydex is calculated based on one single factor. Essentially, the factor is contingent upon whether the business makes payments to its respective suppliers and creditors either "as agreed" or "better than agreed". The latter meaning that the business entity makes payments prior to the agreed upon due date, or pays more than the agreed amount. In other words, the payment exceeds the minimum balance.

The Paydex Score ranges from 0 to 100 (best). A Paydex of 80 or higher is considered healthy for a company - that is a company is paying its suppliers and vendors on time[2] and before the scheduled payment due date. It is also important to note that payments received after they are due,or in other words, late, will negatively affect the organizations Paydex score. Today, most lenders and suppliers are looking for a score of 75 and higher.[3]

see also: D.U.N.S.


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