Your PAYDEX score is one of the most important numbers in your business's financial life, yet most business owners have no idea what a competitive score looks like in their specific industry. Knowing the average PAYDEX score by industry gives you a concrete target to aim for and a benchmark to measure your standing against direct competitors. This guide breaks down PAYDEX benchmarks across 20+ major industries, explains what drives score variations, and shows you exactly how to use this data to improve your credit profile and unlock better financing.
In This Article
A PAYDEX score is a business credit score created and maintained by Dun & Bradstreet (D&B), one of the largest business credit reporting agencies in the United States. Unlike personal credit scores, which are calculated using the FICO model and range from 300 to 850, the PAYDEX score operates on a scale of 1 to 100 and measures only one thing: how promptly your business pays its vendors, suppliers, and creditors.
The score is derived entirely from payment history reported by your trade partners to D&B's database. If you consistently pay invoices early or on time, your score trends toward 100. If you pay late, your score drops accordingly. A score of 80 indicates that your business pays its obligations exactly on time, while a score above 80 means you typically pay ahead of schedule.
Lenders, suppliers, and potential partners routinely pull PAYDEX scores before deciding whether to extend credit, set payment terms, or approve financing. A strong PAYDEX score signals financial reliability and reduces the perceived risk of doing business with your company.
Key Fact: Dun & Bradstreet's database contains payment data on more than 500 million businesses globally, making PAYDEX one of the most widely referenced business credit indicators in commercial lending decisions.
Understanding what each score range means is the first step toward using industry benchmarks effectively. The PAYDEX scale is not intuitive at first glance, because a score of 80 is considered "average" even though it sounds high. Here is how lenders and suppliers typically interpret each range:
| PAYDEX Score Range | Payment Behavior | Creditworthiness Rating |
|---|---|---|
| 100 | Pays 30+ days early | Exceptional |
| 90-99 | Pays 20 days early | Excellent |
| 80-89 | Pays on time to 10 days early | Good |
| 70-79 | Pays 1-15 days late | Fair |
| 50-69 | Pays 16-30 days late | Poor |
| 1-49 | Pays 31-120+ days late | Very Poor / High Risk |
Most lenders and suppliers target a minimum PAYDEX score of 75 to 80 when extending net payment terms or unsecured credit. For larger financing arrangements, scores of 80 or above are typically expected. A score below 70 is a red flag in commercial lending, often triggering additional scrutiny or outright denial.
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Apply Now →PAYDEX scores vary significantly by industry. Some industries, such as healthcare and professional services, tend to carry higher average scores because their businesses rely heavily on trade credit and long-term vendor relationships. Industries with tighter cash flows, such as food service and retail, may trend lower on average, not because those businesses are riskier, but because the structural economics of those sectors make prompt payment more challenging.
The following benchmarks represent industry-aggregated data from D&B trade payment reports, Federal Reserve small business credit surveys, and SBFE (Small Business Financial Exchange) industry reports. Use these ranges as performance targets - not ceilings.
By the Numbers
PAYDEX Score Benchmarks Across Major U.S. Industries (2026)
83
Avg. PAYDEX for Healthcare / Medical
79
Avg. PAYDEX for Construction
72
Avg. PAYDEX for Food Service / Restaurants
81
Avg. PAYDEX for Professional Services
Healthcare businesses, including medical practices, dental offices, veterinary clinics, physical therapy centers, and specialty clinics, consistently report PAYDEX scores in the range of 80 to 87. Medical practices tend to have stable recurring revenue from insurance reimbursements, which supports timely payment of vendor and supplier invoices. Equipment leasing, which is common across this sector, also creates a history of predictable scheduled payments that builds strong PAYDEX profiles.
Industry average PAYDEX: 80-87
Law firms, CPA firms, and business consulting companies tend to maintain PAYDEX scores in the 79 to 85 range. These firms often operate with lean overhead and predictable cash flows from retainer-based client relationships. They have fewer trade credit accounts than product-based businesses, but the accounts they do maintain are typically paid with high consistency.
Industry average PAYDEX: 79-85
Manufacturing businesses show a wide range of PAYDEX scores depending on sector size and supply chain complexity. Small and mid-size manufacturers typically score between 74 and 82. Large manufacturers with more sophisticated accounts payable operations tend to be at the higher end. Seasonal production cycles and commodity price volatility can create temporary cash flow squeezes that push scores down.
Industry average PAYDEX: 74-82
Construction businesses, including general contractors, specialty subcontractors, and home improvement companies, average PAYDEX scores in the 75 to 82 range. The project-based payment cycle common in construction, where invoices may not be paid until milestone completions or client sign-offs, creates natural delays that can affect PAYDEX scores. However, well-run construction businesses with strong cash management routinely achieve scores of 80 or above.
Industry average PAYDEX: 75-82
Retail businesses face structural challenges in maintaining high PAYDEX scores because they purchase inventory on credit but receive customer payments only after sales occur. The timing mismatch can create temporary cash flow gaps that affect payment timing. Average scores in retail typically fall between 70 and 79, with e-commerce businesses generally performing better than brick-and-mortar retailers due to lower overhead and faster inventory turnover.
Industry average PAYDEX: 70-79
Restaurants and food service businesses rank among the lowest for average PAYDEX scores, typically in the 68 to 76 range. The combination of thin profit margins, high inventory turnover, and labor cost volatility makes consistent on-time payment to vendors challenging. However, well-capitalized restaurant groups and franchise operations often score significantly above this range.
Industry average PAYDEX: 68-76
Trucking and transportation businesses typically carry PAYDEX scores between 72 and 80. Fuel costs, equipment maintenance, and driver payroll create substantial cash demands that can make vendor payment timing inconsistent. Fleet owners with solid financing arrangements and stable contract revenue tend to achieve scores in the higher range.
Industry average PAYDEX: 72-80
Technology companies, including software firms, IT service providers, and managed service businesses, generally score between 78 and 86 on the PAYDEX scale. SaaS companies and recurring-revenue tech businesses tend to have predictable cash flows that support strong payment histories. Project-based IT shops may see more variability.
Industry average PAYDEX: 78-86
Financial services companies - insurance agencies, mortgage brokers, registered investment advisors, and similar firms - typically maintain strong PAYDEX profiles in the 80 to 90 range. These businesses often have limited trade credit activity, but the accounts they maintain are paid with high reliability.
Industry average PAYDEX: 80-90
Real estate businesses vary widely, from property managers and investors to residential and commercial brokerages. Scores generally fall in the 73 to 82 range. Real estate investors with property portfolios may have more volatile scores tied to rent collection cycles and capital expenditure timing.
Industry average PAYDEX: 73-82
Wholesale distributors and import/export businesses typically score in the 76 to 84 range. These businesses run high volumes of trade credit activity, which creates a rich payment history for scoring purposes. However, inventory financing and receivables cycles can create timing mismatches that affect scores.
Industry average PAYDEX: 76-84
Important Context: These are industry averages compiled from aggregated D&B data and Federal Reserve small business survey data. Individual business scores can vary significantly based on company age, number of trade lines, payment behavior history, and whether the business actively builds its D&B credit file. A newer business with fewer trade lines may score lower than the industry average even if it has a perfect payment record.
Most small business lenders and equipment financing companies incorporate PAYDEX scores into their underwriting process, though it is rarely the only factor considered. Understanding how lenders weight your PAYDEX score helps you focus your credit-building efforts in the right places.
Alternative lenders and direct financing companies like Crestmont Capital use PAYDEX alongside cash flow data, time in business, and revenue trends to form a complete picture of creditworthiness. A business with a PAYDEX score of 75 and strong monthly revenue is often a better candidate than a business with an 85 PAYDEX and declining income.
For trade credit and vendor terms, PAYDEX is often the primary screen. Suppliers deciding whether to offer net-30 or net-60 terms frequently set minimum PAYDEX thresholds. Businesses below 70 may be limited to prepayment or COD terms, which constrains cash flow and growth.
SBA lenders use PAYDEX as a supplementary indicator. The SBA loan underwriting process is comprehensive, but a poor PAYDEX score combined with a weak personal credit score can tip a borderline application toward denial. Conversely, a strong PAYDEX score can help offset a personal credit score that is slightly below ideal thresholds.
Equipment financing decisions often lean heavily on PAYDEX because the collateral - the equipment itself - provides some security for the lender. A score of 75 or above typically qualifies businesses for standard equipment financing terms, while scores below 70 may require a larger down payment or personal guarantee.
Understanding why average PAYDEX scores differ by industry helps you contextualize your own score and identify targeted improvement strategies.
Cash flow cycle length: Industries with longer receivables cycles, such as construction, healthcare billing, and government contracting, face structural delays between delivering services and receiving payment. This can make paying vendors on time more challenging even for financially healthy businesses. Businesses in these sectors benefit from maintaining a business line of credit to bridge timing gaps without affecting payment velocity.
Volume of trade credit activity: Industries with many vendor relationships - wholesale distributors, manufacturers, retailers - generate more PAYDEX data points, which means individual late payments have less relative impact. A single late payment on a file with 50 trade lines is less damaging than a late payment on a file with 3 trade lines.
Seasonal revenue patterns: Businesses in hospitality, agriculture, landscaping, and retail face predictable seasonal cash flow swings that can create temporary PAYDEX dips. Planning seasonal financing in advance protects payment consistency during slow periods.
Business age and D&B file completeness: Newer businesses often score lower than industry averages simply because they have a shorter payment history and fewer trade lines on file. A PAYDEX score is not generated until D&B has at least two trade experiences on record. Building a complete D&B file through intentional trade line acquisition accelerates score development.
One of the most important things to understand is that a below-average PAYDEX score for your industry does not disqualify you from business financing. At Crestmont Capital, we evaluate the complete financial picture of your business, not just a single credit indicator.
Our team works with businesses across every stage of credit development. For established businesses with strong revenue and a PAYDEX in the 70s, our unsecured working capital loans provide fast access to growth capital without the collateral requirements that banks impose. For businesses with more challenged credit profiles, our bad credit business loans offer flexible pathways to capital that prioritize your business's current revenue and potential over its historical credit file.
We also help businesses build stronger credit profiles over time. By structuring financing appropriately and helping you understand what drives your business credit scores, we position you for progressively better financing terms as your business grows.
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Apply Now →Scenario 1: The Healthcare Practice Seeking Equipment Financing
A physical therapy practice in Phoenix has been operating for four years and is looking to finance $180,000 in new rehabilitation equipment. The practice has a PAYDEX score of 84, above the healthcare industry average of 80-87 but within the expected range. The strong score, combined with solid monthly revenue and clean business bank statements, positions them for standard equipment financing terms with a competitive rate. The application is approved within 48 hours.
Scenario 2: The Restaurant Needing Working Capital
A full-service restaurant in Atlanta has been open for three years and needs $75,000 in working capital to fund a menu expansion and new POS system. Their PAYDEX score is 72, which is actually above the food service industry average of 68-76 - a good sign. The restaurant's consistent monthly revenue of $120,000 plus a clear business plan makes them a strong candidate for a working capital loan. Knowing that 72 is above their industry average gives the owner confidence when approaching lenders.
Scenario 3: The Construction Company Building Credit
A general contractor in Dallas has been in business for two years and has a PAYDEX score of 68, below the construction industry average of 75-82. The low score stems not from late payments but from a thin credit file - the business has only three trade lines reporting to D&B. By proactively adding trade accounts with suppliers who report to D&B and maintaining perfect payment timing, the company brings their PAYDEX to 78 within 12 months, unlocking better terms on their next equipment purchase.
Scenario 4: The Retail Business That Underestimated Benchmarks
A boutique clothing retailer assumed their PAYDEX of 72 was poor because they knew 80 was "average." In reality, the retail industry average is 70-79, meaning their score is perfectly competitive within their sector. Armed with proper industry context, they successfully negotiate net-60 terms with several new suppliers, reducing the cash flow pressure that had been limiting their inventory expansion.
Scenario 5: The Tech Startup Accelerating Credit Building
An IT managed services company two years old needs to qualify for a business line of credit to cover payroll during a gap between major contract payments. Their PAYDEX score is 76, but the technology industry average is 78-86. Recognizing the gap, the founders spend six months establishing additional vendor accounts with net-30 terms from software providers and office supply companies that report to D&B. Their score climbs to 82, positioning them well for a business line of credit application.
Scenario 6: The Wholesale Distributor Protecting a Strong Score
A wholesale food distributor in Illinois has maintained a PAYDEX score of 88 for five years, consistently above the wholesale/distribution industry average of 76-84. During a period of rapid growth that stretched cash flow, the owner used a accounts receivable financing arrangement to bridge receivables gaps rather than letting vendor payments slip. The result: cash flow remained strong, the PAYDEX held at 86, and the business maintained access to excellent supplier credit terms throughout the growth phase.
Pro Tip: Before applying for any business financing, pull your D&B Credibility report and compare your PAYDEX score to the benchmarks in this guide. If your score is below your industry average, invest 3-6 months in targeted credit building before applying for major financing. The difference in available terms and rates can be substantial.
Across all U.S. small businesses, the average PAYDEX score is approximately 75 to 80, according to Dun & Bradstreet aggregated payment data. This reflects the broad middle of the scale, where businesses are generally paying on time or only slightly late. Industry-specific averages vary above and below this range based on each sector's cash flow dynamics.
Most traditional lenders prefer a PAYDEX score of 75 or above for standard business loan products. However, many alternative and direct lenders like Crestmont Capital evaluate the full financial picture, including revenue, cash flow, and time in business, which means businesses with PAYDEX scores below 75 can still qualify for financing. A score of 80+ generally qualifies you for the best available terms.
A personal credit score (FICO) ranges from 300 to 850 and considers payment history, credit utilization, length of credit history, types of credit, and recent inquiries. A PAYDEX score ranges from 1 to 100 and is based exclusively on business payment history with vendors and suppliers. PAYDEX is a business-specific metric that does not factor in the personal finances of the business owner.
A business that pays all existing trade accounts early or on time and adds new trade lines that report to D&B can see meaningful PAYDEX improvements in 3 to 6 months. D&B updates scores as new payment data is received. The fastest improvements come from establishing several new trade accounts with vendors who actively report to D&B, then paying those accounts consistently early.
No. Many vendors do not automatically report payment data to D&B. To build a strong PAYDEX score, businesses must intentionally work with vendors who report to D&B, or they can report payments themselves through D&B's trade reference programs. Large national suppliers, major office supply retailers, and commercial credit card providers are among the most consistent D&B reporters.
Most equipment financing companies look for a PAYDEX score of 70 to 75 for standard approvals, though some direct lenders including Crestmont Capital approve equipment financing for businesses with scores below this threshold when revenue and cash flow are strong. The type of equipment, loan-to-value ratio, and time in business also factor heavily into equipment financing approval decisions.
Yes, a PAYDEX score of 80 is considered good. It indicates that your business pays its obligations exactly on time, which is viewed positively by lenders and suppliers. A score of 80 qualifies most businesses for standard credit terms and financing products. Scores above 80 indicate early payment and can unlock better credit terms, lower interest rates on business financing, and higher trade credit limits.
PAYDEX scores are one of several factors that influence business loan interest rates. A higher PAYDEX score - particularly above 80 - generally supports a lower perceived risk profile, which can translate into better interest rates and more favorable loan terms. However, for most small business loans, personal credit score, business revenue, and time in business are equally or more important rate determinants than PAYDEX alone.
D&B requires a minimum of two trade payment experiences on file before generating a PAYDEX score. A brand-new business with no vendor accounts reporting to D&B will not have a PAYDEX score at all. New businesses should prioritize establishing vendor relationships with suppliers who report to D&B and setting up a D&B DUNS number immediately after formation to start building their credit file.
PAYDEX scores are updated continuously as new payment data is submitted to D&B by your trade partners. There is no fixed monthly update cycle. When a vendor reports a new payment experience, D&B processes it and updates the score accordingly. Businesses that maintain many active trade accounts may see their score refresh more frequently than those with fewer active vendor relationships.
Financial services companies, professional services firms, and healthcare practices typically maintain the highest average PAYDEX scores - generally in the 80 to 90 range. These industries tend to have predictable recurring revenue, fewer inventory-related cash flow pressures, and a strong professional culture around financial obligation management.
Food service and restaurant businesses, retail stores, and agriculture-related businesses often carry the lowest average PAYDEX scores - typically in the 65 to 76 range. This reflects the structural cash flow challenges common in these industries rather than an inherent lack of financial responsibility. Businesses in these sectors that actively manage cash flow can achieve scores well above their industry averages.
Yes. Because PAYDEX scores reward early payment, paying invoices ahead of their due dates directly pushes your score above 80. Paying 20 days early consistently will drive your score into the 90s. This is one of the most straightforward ways to exceed your industry benchmark - if your cash flow allows it, early payment is a high-return credit-building strategy.
Using a business line of credit to pay vendors ahead of schedule is a legitimate and effective credit-building strategy when done thoughtfully. By drawing on your line to pay net-30 invoices on day 10, for example, you build PAYDEX score points while potentially earning early payment discounts from suppliers. The key is ensuring your line of credit cost is less than the combined benefit of the early payment discount and the credit score improvement.
Beyond PAYDEX, businesses are evaluated on D&B's Delinquency Predictor Score and Financial Stress Score, as well as scores from Experian Business (Intelliscore Plus) and Equifax Business. Each uses different data inputs and weighting. PAYDEX is the most commonly recognized business credit score among trade suppliers and commercial lenders, making it the primary benchmark for most small business financing discussions.
Average PAYDEX scores by industry are more than just data points - they are the benchmarks that define competitive business credit performance in your sector. Healthcare and professional services companies averaging in the 80s set a high bar. Construction and manufacturing businesses in the mid-to-upper 70s reflect the structural cash flow realities of those industries. Food service and retail companies in the lower 70s face unique challenges that explain, though do not excuse, below-average payment velocity.
The most important takeaway: knowing your industry benchmark transforms your PAYDEX score from an abstract number into an actionable business objective. If your score is below your sector average, a targeted trade line building strategy can close the gap in six months or less. If you are already at or above your industry average, maintaining that position while leveraging your strong credit profile to access better financing is the priority.
Crestmont Capital is here to help businesses at every stage of their credit journey access the financing they need to grow. Whether your average PAYDEX score by industry benchmark puts you ahead of the curve or behind it, our team structures solutions that meet your business where it is today and helps you build toward where you want to be.
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Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.