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So, what is a Paydex score? A Paydex score is a creditscore for businesses. In fact, it operates much like the FICO individual creditscores you get through shopping with credit cards, taking out personal loans, etc., You can then access your score by purchasing a business credit report.
What Is a Paydex Score? A Paydex score is a proprietary business creditscore generated by Dun & Bradstreet. The score determines your business’s creditworthiness, or how promptly you repay your vendors and suppliers. Scores range from 1 to 100. Paydex Score Defined.
Often referred to as credit reporting agencies, these companies work independently. Credit Reports vs. CreditScores. Your creditscores are also influenced by your credit reports. The reason for this is that creditscores are calculated using information from your credit report.
The short-term business loan model has seen extraordinary growth in recent years—non-bank short-term lenders doubled the amount of money they loaned between 2012 and 2013, from $1.5 Enterprises that generate daily revenue are well-suited for this lending model, as most short-term loans are automatically repaid through daily ACH transactions.
Alternative lending is a fast-growing industry: approximately $3 billion in 2013 was lent through alternative channels, which was double that of 2012. If you default on your “loan” with a pawnbroker, your creditscore won’t report it—but technically, this is a form of alternative lending. Door-to-door money lending services.
It’s not an unfair assumption to make that if a borrower can convince 3 to 5 people to invest money into their business venture, then they’ve probably got a good chance of success—even if they lack the financial documents or credit history to prove it. Kabbage focuses on one product for small business owners: a line of credit.
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