Page 164 - Winning The Credit Game Bundle (CK Patrick)

picture of a business’s health. Even beyond monitoring for errors
and fraud, this is an excellent report to examine if you’re looking
for ways to improve your business’s overall well-being and
future prospects.
Once you have established your Dun & Bradstreet report,
you will have access to useful pieces of information like:

Your PAYDEX score. This number from 1 to 100
indicates your level of risk of paying your creditors
back late or incompletely. The higher your score, the
better Dun & Bradstreet thinks you will be at
successfully repaying loans and credit lines on time.
Scores over 80 are considered excellent and give you a
high chance of obtaining success and low-interest rates
when applying for almost any kind of business
financing.
Your delinquency predictor. This is a number from 1-5
which reflects your likelihood of paying a bill very late
or not at all. In this case, a lower number is better: a
score of 1 indicates a very low chance of delinquency,
while a 5 indicates a very high chance of delinquency.
Creditors want to be paid back on time, so businesses
with a score of 1 are most likely to get access to the
largest credit lines with the most favorable interest
rates.
Your financial stress score. This number is
designed to predict the risk that your business will
go bankrupt or close its doors in the next 12
months.
The scores range from 1001-1875, with lower scores
being better. Dun & Bradstreet will also sort you into a
“class” from 1-5, with class 1 having the lowest risk of
bankruptcy or closure, while businesses in class 5 have
the highest risk.

If you see your business classified in class 4 or 5 on financial

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