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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