PAYDEX Score: What It Is & How to Improve It

A Paydex score is a business credit score developed by Dun & Bradstreet (D&B) that measures a company’s payment history with suppliers and vendors. Ranging from 1 to 100, the Paydex score helps lenders, vendors, and creditors assess how reliably a business meets its financial obligations. Unlike personal credit scores, which factor in multiple aspects of financial behavior, the Paydex score is exclusively based on a company’s payment history.

A high Paydex score signals that a business consistently pays its bills on time—or even ahead of schedule—while a low score indicates a pattern of late payments. This score plays a crucial role in determining a business’s ability to secure trade credit, loans, and favorable terms with suppliers. Businesses with a strong Paydex score are more likely to qualify for financing without requiring personal guarantees from the owners.

In this guide, we’ll break down how the Paydex score is calculated, what different score ranges mean, and how businesses can improve their scores to access better financial opportunities.

How Is the Paydex Score Calculated?

The Paydex score is calculated by Dun & Bradstreet (D&B) and is based entirely on a business’s payment history with suppliers and creditors. The score ranges from 1 to 100, with higher scores indicating on-time or early payments and lower scores reflecting late payments.

Unlike personal credit scores, which consider factors like credit utilization and debt levels, the Paydex score focuses only on payment behavior. This makes it a key indicator of business creditworthiness, as lenders and vendors use it to determine how likely a company is to pay on time.

Key Factors That Influence the Paydex Score

Several factors contribute to a business’s Paydex score, but the most important is payment timeliness—how quickly a company pays its outstanding invoices. The four main factors that impact the score are:

1. Payment Timeliness: The most significant factor is whether a business pays its invoices on time, early, or late. Businesses that pay before the due date can achieve a higher score, while even minor delays can bring it down.
2. Number of Reported Payment Experiences: To generate a Paydex score, Dun & Bradstreet requires a business to have at least two tradelines (vendors reporting payment history) with three or more payment experiences each. The more vendors reporting payments, the more comprehensive and reliable the score becomes.
3. Payment Amounts & Frequency: Larger transactions have a greater impact on the score than smaller ones. A business that consistently makes high-value payments on time will build stronger credit than one making only minimal transactions.
4. Reporting Vendors: Not all vendors report payment data to D&B, so businesses need to work with suppliers that actively report payment activity. Otherwise, even if a business pays all its invoices on time, its score may not fully reflect its payment reliability.

How Payment Timing Affects the Score

Dun & Bradstreet assigns a Paydex score based on how early or late a business pays its invoices. Here’s a breakdown of how different payment behaviors affect the score:

Paydex Score	Payment behavior
100	Paid 30+ days early
90	Paid 20 days early
80	Paid on time
70	Paid 15 days late
50	Paid 30 days late
40 & Below	Paid 60+ days late

For example, a business that consistently pays invoices 30 days early can achieve a 100 Paydex score, which signals exceptional creditworthiness. On the other hand, a company that pays two weeks late will likely score around 70, which may cause lenders and suppliers to view it as a moderate credit risk.

Since Dun & Bradstreet collects payment data directly from vendors, businesses must ensure their suppliers report payment activity to maintain an accurate and favorable Paydex score. Regularly monitoring business credit reports can help identify any missing or incorrect payment data that might be hurting the score unnecessarily.

Paydex Score Ranges & What They Mean

The Paydex score ranges from 1 to 100, with higher scores indicating strong payment reliability and lower scores signaling delays and higher credit risk. Lenders, suppliers, and vendors use this score to assess a business’s ability to pay debts on time and determine whether to extend trade credit.

A high Paydex score can open doors to better financing opportunities, lower interest rates, and favorable trade credit terms with suppliers. On the other hand, a low score may restrict access to credit or require larger upfront payments and personal guarantees.

Understanding Paydex Score Ranges

Dun & Bradstreet categorizes Paydex scores into three risk levels: low risk, moderate risk, and high risk. Here’s a breakdown of what different scores mean:

Paydex Score	Risk Level	What It Means
80-100	Low Risk	Business pays on time or early. Strong creditworthiness.
50–79	Moderate Risk	Some late payments (1–30 days past due). May face stricter credit terms
1–49	High Risk	Payments are significantly late (30+ days past due). Limited access to credit.

A Paydex score of 80 or higher is considered ideal because it signals that a business consistently pays invoices on time. Businesses in this range are typically able to secure trade credit without requiring upfront payments or personal guarantees from the owner. Some companies even make an effort to pay invoices early to achieve a score of 90–100, which can result in even better credit terms and financing opportunities.

However, if a business’s Paydex score falls below 80, it signals a higher risk of late payments. Companies in the 50–79 range have likely missed due dates by a few weeks, which could lead to stricter payment terms from vendors. If a company’s score drops below 50, it suggests severe payment delays (30+ days past due), which can result in denied credit applications, higher interest rates, and difficulty securing supplier agreements.

How Lenders and Vendors Use the Paydex Score

A business’s Paydex score is used in several key financial decisions, including:

1. Trade Credit Approval: Vendors and suppliers use the Paydex score to determine payment terms. A high score may result in net 30, net 60, or even net 90 terms, while a lower score could require prepaid or cash-on-delivery (COD) arrangements.
2. Loan & Financing Eligibility: Lenders consider the Paydex score alongside other business credit scores (like the FICO SBSS score) to evaluate risk. A strong Paydex score increases the chances of qualifying for business loans and credit lines.
3. Insurance & Leasing Decisions: Some insurance providers and commercial landlords review a company’s Paydex score to assess risk before offering business insurance policies or lease agreements. A low score may result in higher premiums or security deposits.

Maintaining a high Paydex score helps businesses secure financing, negotiate better terms with suppliers, and build a strong financial reputation. Regularly monitoring the score and ensuring on-time payments are reported can prevent businesses from unexpected credit roadblocks.

Why the Paydex Score Matters

A business’s Paydex score plays a critical role in determining its financial reputation and creditworthiness. Since the score is widely used by lenders, suppliers, and creditors, having a high Paydex score can lead to better financing options, favorable trade credit terms, and stronger vendor relationships. On the other hand, a low Paydex score may limit a company’s ability to secure funding or negotiate supplier contracts, potentially impacting cash flow and operations.

The Paydex score is especially important for businesses that rely on trade credit—the ability to buy goods or services on credit rather than paying upfront. Many suppliers use the Paydex score as a key factor in determining payment terms, which can significantly affect a business’s cash flow.

How a Strong Paydex Score Benefits Your Business

A high Paydex score (80 or above) can provide several key advantages, including:

1. Easier Access to Trade Credit: Vendors and suppliers are more likely to extend favorable payment terms (e.g., net 30, net 60) to businesses with a strong Paydex score. This allows companies to delay payments without penalties and improve cash flow management.
2. Better Loan & Financing Opportunities: Lenders consider the Paydex score when evaluating business loan applications. Companies with a higher score are more likely to qualify for funding and may receive lower interest rates or higher credit limits.
3. Stronger Business Relationships: Suppliers and service providers prefer to work with businesses that pay on time. A strong Paydex score can build credibility, making it easier to negotiate better deals, discounts, and long-term contracts.
4. Lower Insurance Premiums & Leasing Costs: Some business insurance providers and commercial landlords check a company’s Paydex score when setting insurance rates and lease terms. A higher score may lead to lower premiums or reduced security deposit requirements.
5. Protection from Financial Instability: Maintaining a good Paydex score ensures that businesses retain access to credit and financing during economic downturns. When cash flow tightens, having a strong credit profile makes it easier to secure emergency funding or extend supplier payment terms.

The Risks of a Low Paydex Score

If a business’s Paydex score falls below 80, it may begin to experience credit challenges. The lower the score, the higher the perceived risk, which can lead to:

• Shorter payment terms or denied trade credit, forcing businesses to pay upfront for supplies.
• Higher interest rates on loans and lines of credit due to increased risk.
• Cash flow constraints from the inability to defer payments.
• Reputational damage that may discourage suppliers from working with the business.

Because the Paydex score is directly tied to payment history, businesses that want to maintain strong creditworthiness should prioritize on-time payments, work with reporting vendors, and regularly monitor their business credit reports.

By understanding the importance of the Paydex score, businesses can take proactive steps to strengthen their financial standing and secure better financing and trade opportunities.

How to Improve Your Paydex Score

A strong Paydex score can open doors to better financing and trade credit opportunities, but if your score is lower than 80, it’s a sign that your business may need to adjust its payment practices. Since the Paydex score is calculated based entirely on payment history, improving it is straightforward: pay vendors and suppliers on time—or even early—whenever possible. However, there are additional strategies businesses can use to ensure their score remains strong.

1. Pay Invoices Early or On Time

Since the Paydex score is heavily weighted on payment timeliness, the most effective way to improve it is to pay invoices before their due dates. Businesses that pay 30 days early can achieve a 100 Paydex score, while those that pay right on time will score around 80. If payments are made even slightly late, the score can drop significantly.

2. Work with Vendors That Report to Dun & Bradstreet

Not all suppliers and vendors report payment history to Dun & Bradstreet (D&B). If your payments aren’t being reported, they won’t contribute to your Paydex score. To ensure your on-time payments are reflected, consider:

• Asking existing vendors if they report to D&B.
• Prioritizing relationships with suppliers that actively report payment data.
• Opening accounts with net terms at businesses that report payments, such as office supply stores, wholesalers, and industry suppliers.

3. Maintain Multiple Trade Credit Accounts

D&B requires at least two vendors reporting payment history before a Paydex score can be generated, but having multiple active tradelines can strengthen your business credit profile. Working with several suppliers and creditors increases your creditworthiness and lowers the impact of any single delayed payment.

4. Monitor Your D&B Business Credit Report Regularly

Errors in your business credit report—such as misreported late payments or missing tradelines—can negatively affect your Paydex score. By checking your Dun & Bradstreet business credit report regularly, you can:

• Identify and dispute inaccuracies.
• Ensure payments are being properly reported.
• Spot potential fraudulent activity early.

5. Establish a Payment Schedule for Consistency

Many businesses struggle with late payments due to poor cash flow management, not because they intend to pay late. To prevent accidental delays:

• Set up automated reminders for upcoming invoice due dates.
• Consider early payment discounts to incentivize prompt payments.
• Align vendor payment schedules with your business’s cash flow cycle to ensure funds are available when bills are due.

6. Avoid Large Gaps in Payment Activity

Consistency is key when building and maintaining a strong Paydex score. If a business goes long periods without reporting payments, it may be harder to establish a high score. Keeping regular transactions with reporting vendors ensures the score stays active and accurately reflects the company’s current payment behavior.

How Long Does It Take to Improve a Paydex Score?

Since the Paydex score is updated as new payment data is reported, businesses can see improvements within a few months if they:

• Make early or on-time payments consistently.
• Ensure vendors report payments to D&B.
• Keep multiple active trade credit accounts.

By implementing these strategies, businesses can steadily improve their Paydex score, making it easier to secure financing, negotiate better supplier terms, and build long-term financial stability.

How to Check Your Business’s Paydex Score

Since the Paydex score plays a key role in business financing and vendor relationships, regularly checking your score ensures that your credit profile remains accurate and up to date. Dun & Bradstreet (D&B) is the only organization that provides a Paydex score, so businesses must access it through D&B’s credit reporting system.

Many lenders and suppliers review Paydex scores before approving trade credit or financing, so staying informed about your score can help prevent surprises when applying for loans or negotiating vendor terms.

Ways to Check Your Paydex Score

There are several ways to access your Paydex score, depending on how frequently you need to check it and whether you require detailed credit insights.

Through Dun & Bradstreet’s Credit Monitoring Services

Dun & Bradstreet offers several business credit reporting tools that include access to your Paydex score:

• D&B CreditSignal (Free): Provides alerts when changes occur in your business credit file but does not display the actual Paydex score.
• D&B CreditMonitor (Paid): Allows businesses to view their Paydex score and monitor changes over time.
• D&B Business Credit Reports (Paid): Includes full access to your Paydex score, risk assessments, and detailed trade payment history.

Through a Business Credit Bureau or Third-Party Service

Some business credit monitoring platforms, such as Nav or Experian, may provide access to D&B business credit data, including the Paydex score. However, availability depends on the service and whether they have an active data-sharing agreement with D&B.

By Requesting a Copy from a Lender or Supplier

In some cases, lenders or vendors may share a business’s Paydex score when reviewing a credit application. While this isn’t a direct way to monitor your score, it can provide insights into how potential creditors view your business’s financial health.

How Often Should You Check Your Paydex Score?

Businesses should monitor their Paydex score regularly to ensure it accurately reflects their payment behavior. Here’s a recommended frequency based on different business needs:

Business Type	Recommended Monitoring Frequency
Applying for loans or trade credit soon	Monthly
Has active vendor relationships	Quarterly
New business building credit	Every 6 months
Established business with strong credit	Annually

Regular monitoring helps catch errors, prevent credit fraud, and ensure payments are properly reported. If discrepancies are found, businesses can dispute them with Dun & Bradstreet to correct inaccurate data and maintain a strong credit profile.

By staying on top of their Paydex score, businesses can proactively manage their credit reputation, strengthen vendor relationships, and position themselves for better financing opportunities.