Business Credit – Dun & Bradstreet (D&B) PAYDEX® Score

Business Credit – Dun & Bradstreet (D&B) PAYDEX® Score

 

The main credit score used in the business world is known as a PAYDEX® Score provided by Dun & Bradstreet (D&B).

This number assesses a business’ lending risk much the same as a consumer credit score reflects a consumer’s credit risk.

The PAYDEX® Score is essentially the business equivalent of your personal credit score.

The exact definition from D&B is: “The D&B PAYDEX® Score”  This is D&B’s unique dollar-weighted numerical indicator of how a firm or business pays it’s bills over the past year and based on trade experiences reported to D&B by various vendors, creditors, and/or tradeline account holders.  Paying on time (and even early) power boosts your business credit score and rating, reducing your risk score.

Consumer FICO credit scores range from 350 – 850.  The PAYDEX® Score ranges from 0 – 100 with 100 being the highest score you can obtain.

Individual credit scores are calculated based on a number of factors including card balances, on-time payments, length of credit reporting history (age on credit accounts), etc.

The PAYDEX® Score is calculated based on only one factor – whether a business makes prompt (and even early) payments to it’s suppliers and creditors within the agreed upon terms of payment.  Paying early is key to earning a lower risk score and a higher PAYDEX® Score.

Most lenders and suppliers (vendors and tradelines) are looking for a score range of 70 and higher.  Having a score of 80 and above is considered “very good”!

Here is a breakdown of how the PAYDEX® Score is calculated:
Payment Expectation:
Expect payments may come early	100
Payments generally come within early payment discount period	90
Payment is prompt	80
Payment comes 14 days beyond terms (late)	70
Payment comes 21 days beyond terms (late)	60
Payment comes 30 days beyond terms (late)	50
Payment comes 60 days beyond terms (late)	40
Payment comes 90 days beyond terms (late)	30
Payment comes 120 days beyond terms (late)	20
Unavailable	UN

If you own a business, your PAYDEX® Score is essential in establishing new credit and continuing to build credit limits exceeding $100,000.00.

It only takes 60 days to establish a positive PAYDEX® Score.  To start, you will first want to apply for a D-U-N-S number – this is a 9-digit business identifying number, obtained through Dun & Bradstreet.  It is free to obtain a D-U-N-S number, so do not pay for the number through any other sources.

Once you have received your D-U-N-S number, you will want to find a merchant or tradeline vendor who will extend you credit.  Confirm with all vendors you deal with which business credit reporting agency they will be reporting to.  It is a good idea to keep records so that you can confirm and verify with your business credit reports that all vendors are reporting accurately.

Once you have positive business credit reported to D&B, you will have a positive PAYDEX® Score established.

From there, you will want to begin applying for business credit and use it regularly.  The goal is to receive at least 10 payments reported to the business credit reporting agencies.  That is, ten payments (in total).  This can be 3 payments to one company, 2 payments to another, and 5 payments to another.  You can easily and quickly establish a positive PAYDEX® Score.

As you continue to pay your bills timely, your scores will continue to raise, giving you the ability to qualify for credit with store credit cards, VISA and Mastercard, and banks in your business’ name.

About the Author

My name is Ramona Christine.  You can call me Coach RC.  I am a Credit and Life Coach in addition to serving my community as a Therapist and Pastoral Care provider.

My goal as a credit and life coach is to provide you with vital information to you get your business off the ground with access to business credit and financing.  So, whether you are sitting on a plan (or a dream) to start a business, or whether you are already established as a business, I can move or support you through the necessary steps for absolute financial autonomy by gaining you access to credit repair, business credit building, business loans, business cash, and business financing.

The whole purpose of having a business, besides providing awesome products or services, is to obtain personal security through financial independence.  Isn’t it?

If you are anywhere near where I was two years ago, you may find yourself totally stretched out financially and with your personal credit trying to get your business off the ground or keeping it on the ground.  This may be how you happened across my information.  You were searching for innovative or easier ways to fund the growth and stability of your business.

Two years ago, I over-extended my personal finances and credit cards to nurture my business.  Although I had been providing services as a Therapist since 2013 and as a Pastoral Counselor since 2016, I had not formalized (legally structured) my business.  I simply did what I did and threw any earned income into my personal bank account (rut roh!  Big no,no.)  I primarily traveled as a mental health care provider.

As my business progressively grew, I wanted to formalize my business and obtain an office location (great idea!).  I took advantage of my own money and credit to get the office, furnish the office, buy office supplies, hire an assistant, and pay for marketing services including websites, social media management, utility expenses, travel and auto expenses, and more.  After about six months of fronting my business money from my personal assets and account, I saw a huge hit against my consumer credit (oh no!).  Because my cards were maxed out and my cash was low, my consumer credit score was reduced by over 150 points.  That is a lot for consumer credit scores!  I was so disappointed by this reality check that I began to research…. “How do other businesses do it?”, “How does someone with limited income and finances start a business or keep one on the ground?”

Here I am!  Ready to teach you what I learned and to save your valuable time.

I did my research.  It took me eight months to figure it all out and get my first ball rolling.  I cannot believe how fast it all happened for me once I implemented what I am about to teach you.  By providing you with this information, I am saving you months of research and extremely valuable time.  I am providing you with this information, but I am also available to support you through the steps, in the event you do not have time – that is, because you may be too busy running your business.  Many of the steps you will have to do yourself, but I am always available for consultation and guidance.  I have made a lot of the information available for download.  You can learn more and download the information by visiting https://embracedforsuccess.com or by emailing your questions to ready2b@embracedforsucess.com.  Be sure to include your name, phone number, and email address in any email correspondence.

How does one get their business financially off the ground without over-extending their personal finances?  Now, if you have a lot of money to personally invest into your business, that is awesome.  However, whether you have a lot of finances to invest or not, this vital information just may keep funds in your pocket.  So, hold up before you reach into your pocket!

What exactly is formalizing your business?  This is exactly it!  How you structure your business and how it appears to the lending and banking industries is vital to obtaining business credit and financing.  Simply Google your business name.  What comes up?  How would I find your business if I were looking?  I will provide you with the keys to properly structuring your business and building your professional and financial credibility.

Building business credit is a process.  You will be amazed at just how fast it all happens.  Building financial and professional credibility requires patience and endurance although, unlike consumer credit, the process happens extremely quickly.  Within 60 days of implementing what I am going to teach you in this channel, I was approved for my first revolving business credit line in the amount of $18,000.00.  Many testimonials on my website share how they were able to do the same in an even shorter time frame than me.  This is no lie nor is it an exaggeration.  Shortly after my first revolving credit line was established, I received my first business VISA credit card with a starting limit of $12,000.00.  I also have several other vendor and credit accounts for my business.  In total, within 6 months, I have over $60,000 in credit available to my business.  Can you imagine that?  And here I was trying to get formally established in an office with two of my highest consumer credit card accounts in the amounts of $2,500.00 and $4,300.00 (haha) while negatively impacting my consumer credit (bah-humbug).  There is much to know about the differences between consumer and business credit.  Keep following.

Being impressed with my credit limits is not the point.  The point is that I got business credit following the steps I share and support you through.  I am personally thrilled with my business credit limits because they suit my business’ needs.  I am just a little guy.  You may qualify for even more or maybe you are just a little guy too.  It all depends on what your business’ needs are and the growth that you plan for your company.  Dream big!  In all honesty, the only limit holding anyone back from gaining access to business credit and financing is limited information.

Business credit?  What is that?  Throughout this channel, I talk about the major differences between business and consumer credit.  The benefits are tremendous!  You may be surprised at how much power is involved with business credit.  If you are in search of business credit and financing, do NOT go to the bank.  You must line your T’s and dot your I’s first.  If you are interested and looking to learn more, follow this channel!  I will provide you with a checklist recipe to ensure that you will meet the requirements banks and lenders are looking for.  Believe me!  Once the first ball starts to roll, the rest follow very quickly.

Consumer credit coaching and consultation.  Too many that I know are afraid to even look at their consumer credit reports.  If you have been afraid to look or if you believe that you do not have the budget to address any issues in your consumer credit report, contact me today for an affordable consultation.  If your personal debt is less than $30,000.00, I highly recommend consulting with me prior to participating in a credit repair program.  What I learned from credit repair companies is that they charge a fee for their services (of course) in addition to interest.  They make it sound so simple, that they will contact your creditors directly on your behalf to make payments arrangements and ask the creditors to waive any interest or fees that have acquired on past due accounts.  They also upsell the fact that you will not have to deal with creditors anymore.  Once enrolled in their credit repair program, creditors will have to stop any direct contact with you.  This is awesome because you will not have to deal with them anymore.  I am here to tell you that much of what they do, you can do yourself.  You have the power to negotiate with creditors, but before doing that, it is important that you know what is and should not be on your consumer credit report.  If anything is on your consumer report that should not be there, a simple letter may get it removed.  One word of advice is to pay attention to the dates of anything reporting negatively on your consumer credit report.  Do NOT contact any creditor who has been on your report for over five years.  Once you contact them, the date of contact renews that reporting date.  Most debts on your consumer file legally must be removed after a certain amount of time has passed.

For $69.00, I will review your credit reports and write up a comprehensive credit repair report (with instructions) on how to repair (or improve) your consumer credit score.  Contact me for more information.

As a consumer, you have the right to obtain one free credit report every year.  Visit https://www.annualcreditreport.com/index.action to access your free credit reports.

Welcome again to Embrace(D) for Success!

Ramona Christine, Coach RC

Embrace(D) for Success; Coaching Credit Repair

Office: (720) 328-4074

Toll free:  (888) 267-8493

Support:  customer_care@coachingcreditrepair.com

Info:  ready2b@embracedforsuccess.com

Web:  https://embracedforsuccess.com

*In-person by appointment only.  Due to COVID-19, I am not providing in-person appointments for the remainder of the year of 2020.  I am available for consultations (including therapy and pastoral care) online via teleconferencing through Zoom or Skype and over the phone.  I typically respond to email messages within 24 hours.