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Published By Credit Suite at August 25th, 2016
For all small businesses, their Dun & Bradstreet business credit reports are the most vital of the reports to check. A good score can be the difference between getting funding. Or not. And it can also make a difference when it comes to the terms you will pay. Better business credit scores, of course, will mean better terms.
Your Equifax and Experian business credit reports are still important. Fortunately, working to raise one will help to raise the others. While their emphases may differ, they all have the same underlying concept behind them.
That is, if a business pays its financial obligations on time, then it is a good credit risk for future lenders. And if it can pay its bills early, then it is an even better risk for future lenders and credit providers. Future lenders and credit providers can depend on these reports.
In this instance, past performance is absolutely seen as being an indicator of future behaviors.
This score gives more weight to any trade accounts that are reporting higher amounts of credit extended. And it gives less weight to the trade accounts that are reporting lower dollar amounts of credit.
If a business owner is having any trouble meeting all their credit payback obligations, they can still do something about their scores. In other words if they know they are going to have to pay a bill late, they need to triage their bills. As a result, it is important for that business to be sure to pay their largest dollar creditors first.
Those higher dollar accounts will carry more overall weight within the PAYDEX score. So it is essential to pay the higher dollar accounts on time. This is to increase a PAYDEX credit score as much as possible.
This quick tip can help make sure your PAYDEX score is as high as possible so you can get approvals for more business credit for your company. Be sure to keep your Dun and Bradstreet credit report on your radar. And, in particular, work on your PAYDEX business credit score.