D&B Credit profiles

As a business one of the most important scores is your Paydex score. A personal Fico score is to an individual the equivalent of what the Paydex score is to a business. Knowing what this number is and having the ability to increase it can mean acquiring the financing needed to start or grow your business. These abilities can make the difference in achieving your business goals and losing your business.

A strong Paydex score can help give you access to credit lines for your marketing effort, buying or leasing needed equipment, getting the supplies required to land bigger clients and higher revenues. Obviously if the score is low the opposite will occur.

The Paydex score reflects your payment record. Any business usually ranges between a 30 and an 80 with few at the top being 100. 80 signifies a high score and indicates all bills are being paid promptly. On the other end of the spectrum a low 60 score means late payments. Paying your vendors on time will not give you as high of a score as paying vendors early. If you pay immediately and you don’t have open judgments or collections you may find your Paydex score is closer to 100.

Definition from D&B:

“The D&B PAYDEX® Score is D&B's unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors. The D&B PAYDEX Score ranges from 1 to 100, with higher scores indicating better payment performance.”

Some Creditors do not require a personal guarantee or paydex score. There are creditors that will grant lines of credit to businesses without a personal guarantee or a paydex score. This is a great way to establish credit for your business. Gaining a small line of credit with these types of vendors and making anticipatory payments will increase your Paydex score or establish a strong score for your business.

There are other scores associated with your D&B report and this is how D&B defines them:

Financial Stress Score - D&B's Financial Stress Score was designed to help you predict a business's potential for failure. It is designed to predict the likelihood that a company will obtain legal relief from creditors or cease operations without paying all creditors in full over the next 12 months. The score uses the full range of D&B information, including financials, comparative financial rations, payment trends, public filings, demographic data and more.

Commercial Credit Scoring System -The Commercial Credit scoring model is based upon the observed characteristics of hundreds of thousands of businesses in D&B's database and the relationship these characteristics have to the probability of a company experiencing severe delinquency over a period of 12 months. D&B's Commercial Credit Score is designed to predict the likelihood that a company will pay its bills in a severely delinquent manner (90 days or more past terms), obtain legal relief from creditors or cease operations without paying all creditors in full over the next 12 months, based on the information in D&B's files.

D&B Rating - The D&B Rating can help you quickly assess a firm's size and composite credit appraisal, based on information in a company's interim or fiscal balance sheet and an overall evaluation of the firm's creditworthiness. All these scores and ratings seem somewhat redundant. We also know that when we increase one they all seem to rise. In fast moving markets, with credit being so important, having a low score with Dun and Brad Street could be detrimental to you Companies goals and success. We have the ability to increase scores dramatically.

Call us today to change your business future. Call or email today for a free D&B Credit Analysis

North Shore Advisory, Inc.
Tracy Becker, President
155 White Plains Rd. Suite 203
Tarrytown, NY 10591

Phone: 914-524-8300
Fax: 914-524-5014
info@northshoreadvisory.com

For over 20 years, North Shore Advisory, Inc. a New York based Credit Restoration/Education Company, has helped countless individuals and companies save hundreds of thousands of dollars with their unique Credit Repair process.

Tracy Becker and her team of professionals work businesses helping them get access to the credit they need in order to improve their overall financial health.

Credit Repair Help

• Your Credit Rights
• Banks, Brokers & Realtors
• D&B Business Credit
• Tracy's Seminars
• Credit Repair Blog
• Past Newsletters
• About Us
• Credit Services Pricing

North Shore Advisory, Inc.
Tracy Becker, President
155 White Plains Rd. Suite 203
Tarrytown, NY 10591
Phone: 914-524-8300
Fax: 914-524-5014 info@northshoreadvisory.com