Paydex Score Definition | Business Credit Glossary

Definition

D&B's proprietary 0-to-100 business credit score that measures how promptly a business pays its trade obligations relative to agreed terms.

Explanation

The Paydex score is Dun & Bradstreet's primary measure of business payment behavior. Unlike personal FICO scores, which incorporate many factors including account age, credit mix, and inquiry volume, the Paydex is almost entirely driven by payment timing. A score of 80 indicates that the business pays exactly on the due date on average. Scores above 80 indicate progressively earlier payment — a 100 means payments are consistently made 30 or more days before they are due. Scores below 80 indicate progressively later payment, with the score dropping proportionally based on how many days past due the average payment is. D&B calculates the Paydex using a weighted average of trade payment experiences reported by vendors, suppliers, and financial institutions. More recent payment experiences and larger dollar-amount trade lines receive greater weight in the calculation. A minimum of three reporting trade references are required before D&B will generate a Paydex score for a business. The Paydex is the most widely referenced business credit score for trade credit decisions. Suppliers and vendors who extend net payment terms to business customers frequently check Paydex before approving credit. Many B2B businesses use 75 or 80 as their minimum Paydex requirement for extending net terms.

Example

A landscaping company has six supplier accounts with net-30 terms. They consistently pay five of them 15 days early and one of them 10 days late. D&B calculates a weighted Paydex score based on these payment patterns — the early payments push the score up toward 85-88, while the single late payment drags it down slightly.

Why It Matters

Your Paydex score directly affects your ability to obtain supplier credit, which is the working capital foundation for many businesses. A Paydex below 70 can result in suppliers requiring cash upfront rather than extending net terms, which immediately strains cash flow. For business lending, many lenders use a Paydex minimum of 70 or 80 as an initial qualification screen alongside personal credit requirements.

Frequently asked questions

How do I get a Paydex score if I don't have one?

To generate a Paydex score, you need a DUNS number (register for free at dnb.com), and at least three trade references reporting payment history to D&B. Open accounts with vendors that report to D&B — Uline, Quill, Grainger, and similar B2B suppliers are common starting points. Make purchases and pay early (before the due date) to maximize your Paydex. D&B typically generates an initial Paydex score within 30 to 60 days of three trade lines reporting their first payment cycle.