My Business Credit Journey to 1,000,000

An 80 Paydex IS NOT the end all be all.  Many people are looking to buy an entity that already has an 80 Paydex, while others quit the business credit building process once they have obtained an 80 Paydex. Obtaining an 80 Paydex can take 8 weeks +/-, depending on how consistent you are AND where you fall into the reporting cycle.   Once you have an 80 Paydex, you can quickly lose this status if you do not continue to use the credit granted to you and pay your bills on time. 

 

It is one thing if you have 5 vendors and an 80 Paydex.  It is an entirely different thing if you have an 80 Paydex and 15 +/- active vendors.  In our experience we have found that a lending institution is going to look at the latter with less caution and hesitancy then a company with a limited number of vendors and only a few months of reported history.

The other thing that we have to mention is, if you purchase a seasoned corporation, make sure that you are honest with the creditors that you apply with.  If the entity was established February 3^rd, 2006 and you have only been a member of the entity since April 15^th, 2009, it is important that you are 100% honest about these things with the creditors.  Many applications ask for the date of incorporation and the date the “member x” has been associated with the entity.  The LAST thing you want to do is establish credit under false pretenses.  If in doubt just remember that honesty is always the best policy.