Building Small Business Credit Properly

A lot of business owners need financial support. However, most of them want access to loans that do not require collateral. If you intend to apply for a business loan, one basic requirement that you need to prepare for is good credit, especially if you want to acquire an unsecured business loan.

If you are an established business, it’s crucial to have a solid business credit to back up your loan application. Due to the absence of collateral, most lenders will only extend an unsecured business loan if you have an impressive business credit.

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How Paydex Score Helps Your Business Financing

If you own a business, you should be interested in learning about Paydex Score and how it can affect your business. What is a Paydex Score? How can you keep your Paydex Score in an excellent standing? Is it really important to keep your Paydex on a high level? What can you do to improve your business credit? Let’s answer these questions one by one.

Your Paydex Score Helps Your Business Financing
You may already be familiar with your personal credit report and how your credit score is calculated. For business owners and enterprises, the Paydex is the equivalent of your personal credit score or better known as FICO score. If you’ve already signed your business with Dun & Bradstreet (business credit bureau), you are already building a separate credit history for your business.

Your Paydex Score is the number you get from Dun & Bradstreet. This score is included in your business credit report for your prospective creditors to see. A Paydex score ranges from a low of 80 to a high of 90 to 100. Meanwhile, a score of 70 and below are considered as poor and sends out a negative impression to lenders.

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