PAYDEX score: What it is and how it works

A PAYDEX score is a business credit score developed by Dun & Bradstreet (D&B) that shows how reliably your business pays its bills. Lenders, vendors, and potential partners use it to gauge your company’s creditworthiness and financial stability.

The score ranges from 1 to 100, with higher scores indicating stronger payment performance and lower risk to lenders and suppliers. Understanding how your PAYDEX score works can help you qualify for better financing, negotiate more favorable trade terms, and strengthen your business’s reputation.

What is a PAYDEX score?

Issued by Dun & Bradstreet (D&B), the PAYDEX score measures your company’s payment performance—in other words, how consistently you pay vendors and lenders on time. The score ranges from 1 to 100, with higher numbers showing stronger payment performance and lower credit risk.

Unlike a personal credit score, which measures an individual’s borrowing history, a PAYDEX score focuses solely on your company’s payment behavior with suppliers and lenders. To receive a PAYDEX score, your business must have a D-U-N-S number and at least two vendors reporting your payment history to D&B.

D&B gathers data from vendors, suppliers, and lenders to generate your company’s PAYDEX score and produce a comprehensive credit report that reflects your financial reliability.

How PAYDEX scores work

Your PAYDEX score reflects how quickly your business pays suppliers and lenders compared to agreed-upon terms. Dun & Bradstreet calculates it using payment data reported by your trade partners over a rolling 12-month period.

PAYDEX score ranges and their meanings

Here’s what different PAYDEX score ranges typically indicate:

• 80–100: Excellent payment history. Your business consistently pays bills on or before the due date, signaling low credit risk to lenders and vendors.
• 50–79: Fair to good payment history. You usually pay on time but may have occasional delays. Businesses in this range are viewed as moderately reliable.
• 1–49: Poor payment history. Frequent late payments or delinquencies suggest higher risk and can make it harder to secure financing or favorable terms.

Payment performance categories

Dun & Bradstreet classifies payment behavior as “Prompt” (paid early or on time) or “Slow” (paid after the due date). PAYDEX scores are dollar-weighted, so larger transactions affect your score more than smaller ones. Paying early can push your score above 80, paying on time helps maintain a strong rating, and late payments quickly reduce it.

How is the PAYDEX score calculated?

After understanding what your PAYDEX score measures, it helps to know how Dun & Bradstreet determines it. The company compiles payment data from suppliers and lenders over a rolling 12-month period, sometimes considering up to 24 months for trend analysis.

Each supplier or vendor relationship is recorded as a trade experience, and the payments you make to them are logged as payment experiences. To generate a PAYDEX score, you’ll need at least three payment experiences from two or more vendors. D&B then evaluates these records, factoring in payment timing and transaction size, to produce a score between 1 and 100.

What factors affect the PAYDEX score?

Several elements shape your PAYDEX score, with payment history carrying the most weight:

1. Payment history: Consistent on-time or early payments raise your score, while late payments can quickly lower it
2. Number of trade experiences: More vendors reporting to D&B help stabilize your score and show reliability across relationships
3. Outstanding balances: High or overdue balances indicate cash-flow strain and can reduce your score
4. Credit utilization: Using a large share of available credit may suggest financial stress, even if payments are current
5. Length of business credit history: A longer record of responsible payments signals stronger financial management

PAYDEX score vs. other business credit scores

While PAYDEX is one of the most recognized business credit scores, lenders and vendors often review other systems to get a fuller picture of your company’s financial reliability. The three most common are listed below.

When lenders use PAYDEX vs. other scores

Financial institutions, vendors, and insurers often consult more than one business credit score when evaluating risk. PAYDEX and Equifax’s Payment Index are most relevant for suppliers assessing payment reliability, while Experian’s Intelliscore Plus is used more broadly by banks to evaluate long-term financial stability.

Why your PAYDEX score matters

A PAYDEX score serves as a valuable tool for various entities to assess your business's financial reliability and creditworthiness. Some common uses of a PAYDEX score include:

1. Lending decisions: Banks, credit unions, and other financial institutions often review a company's PAYDEX score when evaluating loan applications. A higher score can improve your chances of securing financing and potentially lead to better terms and lower interest rates.
2. Vendor and supplier relationships: Many vendors and suppliers use PAYDEX scores to determine whether to extend trade credit to your business and on what terms. A strong score can help you negotiate more favorable payment arrangements and build trust with key partners.
3. Insurance underwriting: Insurance companies may consider your business's PAYDEX score when assessing risk and determining premiums for various types of coverage, such as general liability or property insurance
4. Business partnerships: Potential partners, investors, or clients may review your PAYDEX score to gauge your company's financial stability and reliability before entering into a business relationship

Who checks PAYDEX scores

Lenders and financial institutions review PAYDEX scores when evaluating loan applications or setting interest rates. Suppliers and vendors use them to decide trade credit limits and payment terms, while insurance companies factor these scores into risk assessments and premium calculations.

Potential business partners may also review your company’s PAYDEX score before entering into contracts or collaborations to gauge financial stability.

How to check your PAYDEX score

To view your score, you’ll first need a D-U-N-S number from Dun & Bradstreet, which identifies your business in their credit reporting system. If you don’t already have one, you can request one for free through D&B’s website.

Once your D-U-N-S number is active and your vendors begin reporting payment activity, you can check your PAYDEX score using D&B’s online tools:

1. Create a D&B account: Sign up through Dun & Bradstreet’s website
2. Choose a plan: Select either a free or paid Credit Insights plan to access your score
3. Log in to review your report: PAYDEX scores typically update each month, or whenever new vendor payment data is reported

What to look for in your D&B credit report

When reviewing your D&B credit report, pay close attention to how promptly your business pays each vendor, since that directly influences your PAYDEX score.

Look for month-to-month score trends that reflect your recent payment behavior, and confirm that all active suppliers are accurately reporting your payment data. Check for any errors or discrepancies, and report them to Dun & Bradstreet to keep your credit profile accurate and up to date.

Regularly monitoring your PAYDEX score helps ensure your credit report reflects your business’s current financial behavior and gives you time to address issues before they affect financing or vendor relationships.

How to improve your PAYDEX score

The most effective way to improve your PAYDEX score is to pay vendor invoices on time—or early whenever possible. Consistent, timely payments show reliability, while early payments can raise your score above 80 and strengthen your business’s credit reputation.

Building trade references

Dun & Bradstreet requires at least two tradelines with three or more payment experiences to establish or raise your PAYDEX score. Tradelines are accounts your business holds with vendors or suppliers, such as utility providers, office supply companies, or service partners that extend credit.

Not all vendors report to D&B, so it’s important to work with those that do. Many companies that offer trade credit and net-30 terms share payment data with business credit bureaus. Examples include:

• Net 30 accounts: Vendor accounts that let you purchase goods or services on credit and pay the balance within 30 days of the invoice date. Many suppliers offering net 30 terms also report payment history to D&B.
• Business credit cards: Some issuers report payment activity to business credit bureaus such as D&B, Experian, and Equifax. Using a business credit card responsibly and paying your balance on time can help build your PAYDEX score.

Best practices for score improvement

Following these practices can help strengthen your payment history and build credibility with vendors:

• Pay early when possible: Early payments demonstrate strong cash flow and can push your score above 80
• Use multiple reporting vendors: A mix of reporting tradelines makes your score more stable
• Monitor your report monthly: Check that all active suppliers are reporting and that there are no errors
• Avoid overextending credit: High utilization or late payments can quickly lower your score

Build business credit with Ramp

Your PAYDEX score reflects your company’s financial reliability—and maintaining strong credit starts with how you manage daily spending. The Ramp Business Credit Card helps you build credit while giving you full visibility and control over your company’s finances.

With Ramp, you can:

• Strengthen your credit profile: Ramp reports payment activity to major business credit bureaus, helping you build and maintain a strong PAYDEX score through on-time payments
• Prevent out-of-policy spend: Set custom controls for vendors, categories, or teams so every purchase aligns with your budget
• Skip expense reports: Submit receipts instantly via SMS, mobile app, or integrations like Gmail and Lyft
• Unlock savings in real time: Identify spend trends as they happen and automatically find cost-saving opportunities
• Grow without personal risk: Get business-friendly terms—no personal credit checks, no personal guarantee, and flexible limits based on your company’s financials

Ready to get started? Explore a free interactive product demo.