Establishing a good Business Credit Score is sometimes the only method by which a business can get credit. Many owners have been taken task, on their personal credit score, and building a good Business Credit Score presents a lifeline to access credit for their business.
Here is a breakdown of how the Paydex credit score is calculated: and steps you can take to build a good Business Credit Profile.
Score is based on how your BUSINESS pays it’s bills: Payment Expectation:
Expect payment may come early .................100
Payments generally come within early
payment discount period.........................90
Payment is prompt.............................. 80
Payment comes 14 days beyond terms ............ 70
Payment comes 21 days beyond terms ............ 60
Payment comes 30 days beyond terms ............ 50
Payment comes 60 days beyond terms ............ 40
Payment comes 90 days beyond terms ............ 30
Payment comes 120 days beyond terms ........... 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.
• It only takes 60 days to establish a positive Paydex credit score.
To start you will first want to apply for a DUNS Number, a nine-digit business identifying number, with Dun and Bradstreet. Be cautious, D&B specializes in confusion, you just want a DUNS number…..nothing more.
When your DUNS number is established you will next want to find a merchant who will extend you credit and then report that credit to Dun and Bradstreet.
Once you have positive business credit reporting to Dun and Bradstreet, you will have a positive Paydex score established.
You will want to then apply for more business credit and use it regularly.
Make sure you pay all payments early to raise your scores to 80 or higher.
You can easily and quickly establish a positive Paydex credit score.
As you continue to pay your bills timely your scores will continue to rise, giving you the ability to qualify for credit in your business name.
About the Author - Kim Carpentier is Owner and General Manager of Valley Credit Builders (www.valleybusinesscredit.com). He is using his 35 years of successful business ownership, and transition, to help small business owners build business credit so they can separate the financial responsibilities between business and personal credit. He specializes in helping business owners establish excellent business credit scores and then leverages those scores to access cash and credit for their businesses without their personal guarantees. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.
978-886-7805