A new subscriber contacted me after seeing one of my Twitter posts offering a free consultation. Don owns a small construction company. He was frustrated because he had already spent over $2500 for a service with another credit enhancement company and still can't get approved for any substantial credit. He sent me a copy of his D&B report and asked if I could take a look at it.
Don's frustration comes from being told that all he needed was that magical 80 Paydex score and he would be on his way to higher credit approvals. Unfortunately, the news I had for him wasn't good. In fact, the company he has been working with has a history of specializing in getting businesses a Paydex score, and only a Paydex score, before his progress (and their support) drops to subterranean levels.
And that's because its easy to meet the lowest possible requirements for getting a Paydex score. All you need is three payments in the D&B file, with at least two of those payments being "credit" accounts. Anybody can do that. But getting your clients substantial (and sustainable) credit requires you to keep working and improving all six of the scores and ratings — and you can't do that if you don't have the knowledge and experience to accomplish that for your clients.
In Don's case, his 80 Paydex score wasn't doing him any good because the rest of his scores were horrible. Instead of boosting his ability to get approvals, his scores were sending just the opposite message, telling creditors his business was high risk, low viability, and 88.6% likely to fail within the next 12 months.
Even worse, that other company was so determined to string Don along (and the fees he was paying) that they kept creating more new accounts in his business name and sending out one application after another, all the while cannibalizing his personal credit scores and D&B risk ratings in the process.
And just when he thought things couldn't get any worse, his best supplier actually cut off his credit line after being alerted by D&B that his business is now showing signs of severe financial distress.
When reviewing Don's corporate credit report, it was easy to identify all the problem areas, and easy to understand why D&B had downgraded his business. With only four payments in his credit report, 47 inquiries in just 90 days, and virtually no in-depth data about his company, his credit scores tanked under the negative weight.
Imagine his relief when I told him how easy its going to be to reverse the damage. Not only did I help him lay out a plan for improving his existing scores and ratings, but I also showed him how to update