This is how we calculate the Dun & Bradstreet Rating & Scoring (2024)

FAQs

This is how we calculate the Dun & Bradstreet Rating & Scoring? ›

Dun & Bradstreet generates credit ratings and scores based on information provided by your business, as well as lenders and suppliers, which report your payment information to D&B. D&B also looks at public records related to your business, such as regulatory requirements or business tax reports.

Dun & Bradstreet assigns scores on a scale of 1 to 100, with 100 being the best possible PAYDEX Score. Scores are divided into three Risk Categories, with 0 to 49 indicating a high risk of late payment, 50 to 79 indicating a moderate risk, and 80 to 100 indicating a low risk.

In order to check your PAYDEX score, you'll need to purchase a report through D&B. A subscription to D&B's Credit Insights Basic costs $49 per month and allows you to view multiple credit scores, including your PAYDEX Score.

A score of 1–49 indicates a high risk of late payment, 50–79 indicates moderate risk, and 80–100 represents low risk. To view your credit file, you'll need the CreditBuilder™ Plus product. Signing up for CreditBuilder™ Plus comes with a D-U-N-S^® Number, which is how Dun & Bradstreet will track your credit history.

Dun & Bradstreet generates credit ratings and scores based on information provided by your business, as well as lenders and suppliers, which report your payment information to D&B. D&B also looks at public records related to your business, such as regulatory requirements or business tax reports.

The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet's proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure.

On the Dun & Bradstreet PAYDEX score, paying on time can get you a score of 80, but paying early could get you to 100. Whatever you do, avoid paying late or allowing your accounts to become delinquent at all costs. Late payments could indicate that your business has financial problems and therefore damage your score.

The best possible PAYDEX score is 100, indicating that a business has a perfect repayment history, consistently paying off debts 30 days early. A score of 1 represents the highest risk of late payment, as it indicates that a business has consistently fallen over 120 days past due repaying debts.

Most small business lenders like to see a business credit score above 75, but local lenders may consider lower scores for small businesses or startups.

Can I get my PAYDEX score for free? ›

Getting a Free Credit Score for Business from D&B's PAYDEX

The number is at no cost. Plus the CRA will require to have reports of your payments with four or more merchants. Your firm's PAYDEX score reveals if your payments are usually made promptly or ahead of schedule. As you may expect, a higher number is better.

The D&B Rating provides a quick and clear indication of the credit-worthiness of an organization, which helps you to identify profitable opportunities for growth, and risks that could affect bad debt and cash flow.

No, every business doesn't need a DUNS number. That said, it can help you build good business credit. It's also required for a credit report from Dun & Bradstreet. Some private lenders may also want to use your DUNS number.

Yes, your LLC can have a credit score, often referred to as a business credit score or a business credit rating. Business credit scores are separate from personal credit scores and are specific to the financial activity of the LLC. These scores are typically maintained by business credit bureaus.

Other Types of D&B Credit Scores

Scores from 0 to 49 suggest your company has a high risk of making late payments, 50 to 79 suggests moderate risk and 80 to 100 indicates low risk. D&B Delinquency Score: This score similarly suggests whether your company is at risk of making late payments or going bankrupt.

A company that has a 5A1 rating has the highest D&B Rating: meaning their net worth is $50 million or higher and credit risk is low.

D&B Rating : 1R3. Number of employees: 1R indicates 10 or more employees. Composite credit appraisal: 3 is fair. The 1R and 2R ratings categories reflect company size based on the total number of employees for the business.

Issued by Dun & Bradstreet, your Paydex score represents how likely it is that your business will pay its vendors and suppliers on time. While your personal credit score ranges from 0 to 850, your business's Paydex score ranges from 0 to 100.