The Failure Score ranges from 1,000 to 1,875, with 1,875 being the “best” score. The Failure Score forecasts the likelihood that a business will seek legal relief from creditors or shut down without paying its creditors within the next year.Scores of 80 and above may be considered good, because they signify a low-risk business that always pays its creditors on time. PAYDEX scores range between 1 and 100, with 100 being the “best” score. The PAYDEX Score measures a business’s past payment history to help creditors, lenders, suppliers, landlords, and even insurance companies decide whether to do business with the company, as well as what credit terms and insurance premiums to charge.Scores range from 101 to 670, with 670 being the “best” score, or lowest indication of delinquency, but any score above 580 indicates minimal chances of delinquency. The Delinquency Predictor Score forecasts the likelihood that a business will make severely late payments or seek legal relief from creditors within the coming year.There are three possible D&B business credit scores: the Delinquency Predictor Score, the PAYDEX Score, and the Failure Score. Businesses can request a D-U-N-S number from D&B, or D&B will generate one when a vendor, lender, or supplier reports a business’s payment history to D&B. Like a Social Security number for individuals, a D-U-N-S number is a nine-digit ID used to identify a business and check its credit profile. To get a D&B credit score, a business must first obtain a D-U-N-S number. In addition, vendors, lenders, and suppliers can report a business’s payments directly to D&B (as well as the other credit reporting agencies), and this data also gets factored into the credit score calculation. D&B looks at factors such as payment history and financial performance, based on information gathered from public sources, including financial statements, legal judgments, and news reports. What Is a Good Dun & Bradstreet Credit Score?ĭ&B credit score information is used by potential business partners, vendors, suppliers, and lenders to assess the business’s financial stability and credibility. ![]() Also, not only does each of the four business credit reporting agencies use its own proprietary scoring algorithm, but several have multiple scoring configurations that reflect different aspects of a business’s financial stability and reliability.īecause the lack of scoring consistency among credit reporting agencies can be confusing, let’s examine what a “good” business credit score means at each agency, what financial factors each may take into account, and how a business can improve its credit score. And unlike personal credit scores that range from 300 to 850, business credit rating agencies tend to use their own numeric ranges for their scoring systems – what’s considered a good score by one agency may not be deemed good by another. One reason for this is that there are four main business credit reporting agencies: Dun & Bradstreet (D&B), Experian, FICO Small Business Scoring Service (SBSS), and Equifax. But knowing what constitutes a “good” score gets a little more complicated for businesses, compared with determining the same status for personal credit scores. Using a business credit card can help you to build a good business credit score and also be key to obtaining loans, getting favorable payment terms, and winning new business.
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