BUSINESS CREDIT, General Information


business credit
Schedule-button-nbA lot of business owners like #smallbiztaxlady want to establish credit in the name of the business without using their personal social security number. This method of obtaining business credit is often referred to as “obtaining business credit with no PG.” No PG (personal guarantee) simply means obtaining business lines of credit without using your social security number. The driving force behind no PG can be low personal credit scores, to business owner(s) wisely looking to protect their personal credit, and avoid personal liability of business debts.

Like personal credit, a businesses credit history is given a score. Business credit scoring is called a Paydex score, and your goal should be to keep your score at or above 80. Listed below the Paydex scores and what they mean.

100 – Pays before invoice is generated
90 – Pays during discount period
80 – Pays when invoice is due
70 – Pays 15 days beyond terms
60 – Pays 22 days beyond terms
50 – Pays 30 days beyond terms
40 – Pays 60 days bevond terms
20 – Pays 90 days beyond terms
UN – Unavailable

Although we’ve given you the basics, this is not an all-inclusive article. Should you have questions, or need business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office at 855-743-5765. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.


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