A Companies Paydex score is its heartbeat. A small business owner should know the Paydex score of each entity they own.
Many people don’t even know that their business has a Paydex- because they have never looked! People in the real estate industry, for example, can have many different corporations- and each one would have its own Duns number and Paydex Score.
Dunn & Bradstreet, the main business Credit Reporting Agency, gives this cryptical definition:
“The D&B PAYDEX® Score is D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors. The D&B PAYDEX Score ranges from 1 to 100, with higher scores indicating better payment performance.”
So what does that mean to you?
Here are some tips to raise your Paydex score:
1)Pay Bills before the due date.
Unlike on a personal credit report, where paying by the due date is good, while paying after can get you dinged with a negative mark, on your business credit report the Paydex calculates when you pay to the day- so paying the day you get the bill (way before the due date) will net you a higher Paydex then paying on the due date.
2)Buy products from multiple vendors.
Buying office supplies from both Viking (www.viking.com) and Staples (www.staples.com) , and getting your printed materials from two suppliers, say NEBS (www.nebs.com) and Rapidforms (www.rapidforms.com) will net you more tradelines on your report, which translates into a stronger candidate for larger credit lines and more approvals for new accounts.
(The above is true even though NEBS and Rapidforms are sister companies.)
3)Get your Cellular phones under the business name.
Many Businesspeople, while having their phone as a business expense, have it under their own name for billing. By transferring the Phone to the business Entity, this will create another positive tradeline for an item you already pay for anyway. The same is true for other Bills you may have (Bottled Water delivery, Gasoline Card, etc.)
4)Get more Tradelines
A great Resource for Business Tradelines is located at www.bhmh.net . This free, ad-supported site will contains a list of vendors that offer credit to small businesses.
5) And last but not least-
The “Business Credit Secrets” eBook is available at businesscreditguru.com. This $24.95 Resource contains those golden nuggets and the no-holds-barred “how to” to obtain Business Credit from Dell, Staples, Office Depot, Uline, and Many, Many More. it comes with a 60 Day Money Back Guarantee. Using ClickBank, your privacy is 100% Secure.
About the Author:
Ted Aberle is the author of Business Credit Secrets; How to obtain credit for your small business -What the Big Business Owners know and do to keep a potential business loss from screwing up their personal credit history. The ebook can be purchased at http://paydex.business-credit-secrets.com
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