What is a Paydex score and how does it affect your business credit?

Unlike personal FICO scores, Paydex is based solely on payment history, not debt levels or credit inquiries. D&B calculates it from trade references reported by suppliers and creditors. A Paydex of 80 is the typical threshold for 'satisfactory' business credit — it corresponds to on-time payment on average. Scores above 80 indicate anticipatory payment; below 80 indicates late payment with scores declining as payment delay worsens.

Paydex scores matter for B2B trade credit: suppliers deciding whether to offer net-30 or net-60 terms, banks evaluating lines of credit, and government contracts that require financial vetting. A collection account, civil judgment, or pattern of late payment can significantly depress the score and restrict a business's access to favorable payment terms.

For creditors, understanding that a debtor has a D-U-N-S number (D&B's identifier) and an active Paydex profile means that reporting a delinquent account is a viable leverage mechanism. When a debtor knows that late payment will damage their business credit score — which affects their own trade relationships — they have a concrete financial incentive to resolve the balance promptly.