D and B reports, along with most business credit reports, are often tough to decipher. Many business owners, big and small, can be left scratching their heads, asking: what does it all mean? They want to know if their report is good, bad, and correct. In order to better understand D and B reports, there are three different ratings and scoring figures that Dun and Bradstreet incorporates: a company's overall D and B rating, their Paydex score, and their percentage of payments within terms.

D and B ratings, Paydex scores, and percentage of payments are the main "ingredients" used in an application only process. Having these items in order will also ensure a quick turnaround. It's strongly recommended that a company closely monitor these items, if they want to receive a commendable report.

While Paydex scores and percentage of payments are essential components of D and B reports, ratings are arguably the most important of the three. Ratings offer a company's fine details; for instance, if financial statements have not been supplied to Dun and Bradstreet, a company's rating will be a 1R or 2R. The 1 or 2 portion of this rating reflects the number of employees listed on a report; a 1 indicates 10 or more employees, while a 2 indicates less than 10. The R portion of the rating means that no financials are in the D and B database. After the "R" rating, a company will again be assigned composite credit appraisal between two and four.

There are no financials in D and B ratings, thus they are based on payment history, public filings (any suits, liens and judgments against the business), and time in business. A 2 is considered the highest credit appraisal that a company not supplying financials can receive. In order to receive a 2 composite credit rating, a company will normally need to have over 10 years time in business.