Business Advice https://bizdeparture.com Just another WordPress site Fri, 18 Nov 2022 15:26:52 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://bizdeparture.com/wp-content/uploads/2022/08/cropped-favicon-32x32.png Business Advice https://bizdeparture.com 32 32 How to get a DUNS Number https://bizdeparture.com/how-to-get-a-duns-number/ Fri, 18 Nov 2022 14:59:39 +0000 https://bizdeparture.com/?p=323 A DUNS Number is a unique nine-digit number that identifies businesses worldwide. It’s used by companies to establish credit, obtain licenses, and secure contracts with other businesses.

Getting a DUNS Number is easy and free – you can apply online by providing basic information about your company and its products or services.

Once you have your number, you'll be able to do business with the federal government and collaborate with foreign companies. 

What is a DUNS number?

Dun & Bradstreet’s data universal numbering system (DUNS) is one of the world’s most widely used business credit scoring systems. It was developed in 1963 to address the lack of standardized business information, making it difficult for lenders and other creditors to assess risk. To solve this problem, they created DUNS, which assigns each business a unique nine-digit number. 

The DUNS system assigns a unique identifier for each business in its database. The number is widely recognized and accepted by companies worldwide as a standard way to identify businesses. D&B® maintains a database of more than 265 million businesses worldwide, which includes information on more than 60 million business locations.

DUNS Numbers are used by many businesses and organizations worldwide and are often required when applying for contracts or loans. These numbers are also used to track businesses for credit reporting. Government agencies and large corporations also use them to identify and track businesses. 

When Do I need a DUNS Number?

You may need a DUNS Number if you’re doing business with the government or a large corporation or looking to get business credit. Once you have your DUNS Number, it will be listed on your D&B® profile, which is available to creditors and other businesses upon request. A DUNS Number identifies a company’s D&B® business credit file and can include the following: 

  • company name
  • company address, 
  • company contact number
  • headquarters, branches, subsidiaries, etc.
  • scores and ratings that measure different financial health indicators. 

All these factors combined are referred to as the Dun & Bradstreet Live Business Identity. A DUNS Number can be used to:

  • request your business credit report containing your company’s D&B® scores and ratings, suits, liens, or judgments
  • your company’s payment history
  • any other information that can be used to help establish your company’s creditworthiness as a customer, supplier, or partner.

Credit history

Just like you need to build your personal credit history to get approved for loans and credit cards, you also need to build your business credit history. A DUNS Number is step 1 in this process. Once you’ve registered and received your DUNS Number, all financial transactions of your business from that point forward will count towards building your business credit history. 

Having a good credit history is essential for businesses because it shows potential lenders that the company is financially responsible. A strong credit history can also help businesses get better loan terms and credit lines.

Doing business with government entities

While obtaining a DUNS Number is optional, having one is required for possible contract vendors and federal grantees or cooperative agreement applicants. Many government institutions conduct risk assessments on prospective partners or suppliers as part of the vetting process. 

You may also need a DUNS Number when submitting a bid. The organization or corporation requesting the D&B® Number can use it to: 

  • help verify the legitimacy of a company 
  • access the D&B® scores
  • access the ratings in the bidder’s business credit report.

Working with foreign companies

A DUNS Number is an essential tool for collaborating with foreign companies. It provides a quick and easy way to establish trust and credibility between businesses. As a result, it is an essential tool for businesses operating in today’s global economy. 

Separating personal and business finances

In addition to obtaining an employer identification number (EIN) and registering your business entity, a DUNS Number is another way to ensure that your business and personal finances are kept separate. With a DUNS Number, you can build your business credit identity separate from your personal credit history. A DUNS Number can also ease the stress of funding your company from your personal credit. 

How to get a DUNS Number

Check if you already have one

Before applying for a DUNS Number, you should check if you already have one. D&B® provides two ways to accomplish this:

  • You can either navigate to the D&B® website to do a lookup or
  • You can call the D&B® on their toll-free number at 1-866-705-5711.

If you choose to use the online lookup tool, you’ll have to provide at least the following compulsory information:

  • Legal business name
  • State and country

If you found your company, you can request your DUNS Number via Email and receive an email similar to this one:

What you will need to apply for your DUNS-Number

You can apply for a DUNS Number online through D&B®’s website by providing some basic information about your business:

  • Legal Company Name
  • Company address
  • Trade or DBA company name
  • Physical address
  • City, state, and zip code 

How to apply

You can follow these steps: 

  1. Open the “Get a DUNS Number” Website.
  2. Select your country and preferred language, then click “Continue.”
  3. Select “I’m starting a new business.” 
  4. Enter your personal information, then click “Continue.”
  5. Enter your business information, then click “Submit.”
  6. Once your request has been processed, you will receive your DUNS Number via email. 

Once you have your DUNS Number, it will be listed on your D&B® profile, which is available to creditors and other businesses upon request.

Register a DUNS Number

Applying for a DUNS Number is straightforward, but you must first decide on your company’s business structure (LLC, C-Corp, S-Corp, sole proprietorship, etc.) and register the entity type with your state. You must also provide your business name, address, and contact information. 

Information about your business, such as the products or services you offer and the size of your company, is also required. Once you have gathered the required information, you can begin the application process by visiting the D&B® website. The website will walk you through the steps necessary to complete your application and obtain your DUNS Number.   

It's also important to remember that DUNS Numbers are location specific. That means each company's branch, division, or headquarters needs its own DUNS Number.  

Reporting past business transactions

With a DUNS Number in place, public records like judgments and bankruptcies can be added to your company’s credit report. Since most merchants and suppliers don’t report directly to D&B, you’ll have to provide your own transaction history for a fee if you want it to factor into your score.

Frequently Asked Questions

How long does it take to get a DUNS Number?

Businesses that apply for a DUNS Number as part of a federal government contract could receive their number in as little as 24 hours. You also have the option to expedite your DUNS application, but it will cost extra. Otherwise, it may take up to 30 days to acquire a DUNS Number. Allow for this processing time when applying for your DUNS number, and submit your application well ahead of when you require your finished registration.

Can I get a DUNS Number as a Sole Proprietor?

Yes. A D-U-N-S number is available to all types of businesses, including sole proprietors. 

Does it cost money to get a DUNS Number?

DUNS Numbers are free from D&B® for all entities doing business with the Federal Government. If you need a number fast, you can expedite your DUNS application through DUNSFile, but it will cost you $229.

Is a DUNS Number the same as a Federal Tax ID Number?

A DUNS Number is distinct from your federal tax ID Number (also known as your EIN). Although a DUNS Number and a Federal Tax ID number serve different purposes, they are both essential for businesses.

What’s the difference between DUNS and EIN?

DUNS and EIN are two different ways that businesses can identify themselves. However, a DUNS Number is used for business credit reporting, while the IRS issues an EIN for tax purposes.

What’s the difference between SAM and D&B® DUNS Numbers?

SAM (System for Award Management) and D&B® DUNS Numbers may seem similar, but they have some important differences. SAM is a government database that contains information on businesses that are registered with the government. D&B® DUNS, on the other hand, is a private database maintained by Dun & Bradstreet. It contains information on businesses of all sizes, both public and private. 

The biggest difference between the two databases is the amount of information each contains. SAM only has basic business contact information, while D&®DUNS has much more detailed data, including financial information. This makes D&B® DUNS a more useful tool for businesses looking for new partners or suppliers.

Final thoughts

A DUNS Number is a unique nine-digit number assigned to businesses by Dun & Bradstreet. It helps companies verify their identity and creditworthiness with suppliers, partners, and other businesses. D&B® is a respected source of business information; having a DUNS Number can help build credibility for your business.

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