The primary indicator or your business overall health is your PAYDEX® score. If you are applying for loans you will need to first build your Paydex score. Your Paydex score is a business credit score that’s generated by Dun and Bradstreet (D&B).
Their model analyzes a business’ payment performance (i.e., if it pays its bills on time) and gives it a numerical score from 1 to 100, most businesses operate with a 50 or less Paydex, 70 Paydex is perfect business credit, most of our business graduate our program with an 80 Paydex which is equivalent to an 800 personal credit score.
Just like your creditworthiness hinges on a Credit score, a business’s creditworthiness is determined by a scoring system as well. Whether you know it or not every time you apply for credit for your business, apply for a government contract or even offer to do business with another company someone will access your Paydex score.
If your business is not getting the credit it deserves then this is the problem. Image the power you will have once your personal credit score exceeds 720 and your business credit score is 80. This is what we call unlimited access to capital.
Also know that your personal credit score doesn’t affect your Paydex score, however, it is vital to separate your business and personal finances.
Most small business make the same mistake. They start their business with cash instead of credit. No matter how much money you start with it is never enough. That is why almost 90% of businesses fail in the first two years.
Successful business start with business credit which never runs out. Our CEO was featured on the cover of Wealth magazine because our company has helped more small business become successful than any other in the country and we do this by making sure that all of our small businesses have perfect personal and business credit.