What is the PAYDEX score?
PAYDEX® is a business credit score generated by Dun and Bradstreet. Their model analyzes a business’ payment performance and gives it a numerical score from 1 to 100, with 100 representing a perfect payment history.
The PAYDEX score is used much like an individual’s credit score. It helps lenders, vendors and suppliers determine whether to approve you for financing and on what terms. Typically, the better the score, the higher the credit limits, the lower the interest rates, and the better the payment terms. This can save your business money and give you more time to pay bills, dramatically improving cash flow.
Here’s a breakdown of the Paydex Score ranges:
- 100: Pays 30 days sooner than terms
- 90: Pays 20 days sooner than terms
- 80: Pays on due date
- 70: Pays 15 days beyond terms
- 60: Pays 22 days beyond terms
- 50: Pays 30 days beyond terms
- 40: Pays 60 days beyond terms
- 30: Pays 90 days beyond terms
- 20: Pays 120 days beyond terms
- U/N: Unavailable/no payment
Why do I need a Shelf Corp with 80 Paydex score?
We’ve had a short discussion about the concept of Paydex score. Now we come to its relevance as a factor while purchasing a shelf corporation. Most banks and large vendors consider the Paydex score seriously at the time of financial evaluation of businesses that have applied for credit. Most of you are looking at purchasing a shelf corporation as a means to access institutional finance quickly. We’ve had lots of people who come to us for assistance after being sold new shelf corporations. A recent shelf corporation with zero credit history may come at a low price but it is of little use when you go to a lender for financing. Therefore, you need a shelf corp with a Paydex score of 80 or above, so that lenders can see that your entity has a regular credit history. A Shelf corp with 80 Paydex score signifies that the corporation pays its dues on time, and has been recognized as a responsible corporate entity by Dun and Bradstreet.
Below, we will describe how we can help your business achieve a good credit score, through our specialized advice. We’ve helped hundreds of businesses achieve such scores and then go on to access funding and achieve success in a relatively short time.
How does the 80 Paydex Program work?
If your business naturally deals with a high number of suppliers on a regular basis, purchasing from them frequently and making all payments before the due date, then you should be able to “naturally” obtain an 80 or higher Paydex Score within the first 12 to 24 months of operations.
However, if your business:
- Is a recently purchased Shelf Corporation, and/or
- Does not fit the scenario above, and/or
- Does not want to wait 12 to 24 months
Then our 80 Paydex Program is the solution you need.
We can achieve an 80 Paydex Score or higher within 45 to 60 Days, assuming you follow our instructions in a timely manner. We do everything possible on your behalf in order to minimize your involvement in the process.
You can go for Funding either before or after the 80 Paydex Program is complete – The choice is yours. However, beware that some of the Lenders you apply with may deny your applications specifically due to not having an 80 Paydex Score. For this reason, we always recommend that our Clients obtain the 80 Paydex Score before going to Funding, so that Funding Results can be maximized.
Already purchased your Shelf Corporation or have an Existing Business? Ready to get your 80 Paydex Score? Then use the Order Form below to get started now!