What is Paydex?
The Paydex payment index statistically measures the regularity of a company’s supplier payments.
It is expressed as number of days average payment delay, based on three minimum payment experiences (from three separate suppliers).
A payment experience is the average of a company’s payment habits with one of its suppliers (one of DunTrade’s partners), over an 8-month analysis period.
The first objective of Paydex is to predict defaults by your customers. In addition to measuring risk, our partners use this index to establish better collection or business development strategies.
The data needed to calculate Paydex is provided by the customer accounting experiences of over 15,000 participating companies worldwide.
Elements other than Paydex are also taken into account when analysing payment behaviour: the trend, an industry comparison, an analysis per portion of outstanding payment experiences etc.
Paydex facilitates the understanding of payment habits by simplifying the reading and communication of this part of the analysis.
What is the purpose of Paydex?
Whether you’re a customer, supplier or credit institution, consulting a company's Paydex allows you to:
- decide whether or not to do business with them,
- define credit terms that reflect the level of financial risk they represent,
- shape your collection strategy around them,
- optimise your business with them.
How do you consult a company’s Paydex?
The Paydex score is available to our clients in all of our risk management solutions and accessible to DunTrade partners, in return for the customer portfolio data they entrust to us.
