Changes in payment performance constitutes one of the earliest signals of possible financial difficulty. They also represent one of the most predictive elements of the likelihood of failure before the filing of official documentation such as a balance sheet. 

Payment performance trends offer an exclusive insight into the trading performance of a business. D&B collects millions of trade payment records on a monthly basis from companies operating in a broad variety of commercial sectors, and presents the result using the D&B Paydex. 

D&B Paydex is a 1 to 100 dollar-weighted numerical indicator of payment performance of a company, which determines how quickly the company is likely to pay its bills by reviewing its past payment patterns as reported to D&B. A 12-month Paydex trend enables you to review a company’s payment trend on a more granular basis and identify companies that are likely to become delinquent.

The following table illustrates the corresponding payment behaviour that each level of score represents:

 

 

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