Business Definition for: PAYDEX®
The D&B PAYDEX is a unique, dollar weighted indicator of a business's payment performance based on the total number of payment experiences in D&B's file. The D&B PAYDEX ranges from 1 to 100, with higher scores indicating better payment performance.
Payment experiences are gathered by D&B from suppliers and vendors this firm does business with. Each experience reflects a different supplier and reflects how bills are met within relation to the terms granted. Up to 875 payment experiences are used to generate the PAYDEX Score and up to 80 representative payment experiences are reported in your credit report.
Use this key to help you interpret the D&B PAYDEX:
|80-100||LOW risk of late payment|
(averages prompt to 30 days within terms)
|50-79||MEDIUM risk of late payment|
(averages 30 or less beyond terms)
|0-49||HIGH risk of late payment|
(averages 30 to 120 days beyond terms)
D&B requires at least 4 of your payment experiences on file in order to create a PAYDEX for your business.
Risk categories were created to make it easier to translate the PAYDEX into understandable risk groups:
|PAYDEX 80-100:||Low risk of late payment|
|PAYDEX 50-79:||Moderate risk of late payment|
|PAYDEX 0-49:||High risk of late payment|
Based on changes to your PAYDEX, D&B takes a proactive approach to notify you when a change in your score is bringing you closer to a different risk category.
As an example, if your PAYDEX declined from 60 to 55, you would receive a message within your alert that you are approaching a High risk category (PAYDEX 0- 49). That is, another significant decline in PAYDEX (from 55 to 50) would already categorize you as higher risk of late payment.
Your PAYDEX reflects past payment history and payment trends. Payment experiences are gathered by D&B from suppliers and vendors a firm does business with. Each experience reflects a different supplier and reflects how bills are met within relation to the terms granted. Up to 875 payment experiences are used to generate the PAYDEX and up to 80 representative payment experiences are reported in your credit report.
To see your payment experiences that D&B has on file, please refer to the "Payments" section of your report.
Suppliers, banks, lessors, landlords, and customers all use the PAYDEX for various reasons including:
You can improve your PAYDEX by addressing those areas of your business that most influence the score. Here are some steps you can take:
© 2013 Dun & Bradstreet Credibility Corp.