What is a D-U-N-S Number?
A D-U-N-S, or DUNS number, is a unique nine-digit number used to identify business entities developed by the business credit bureau Dun & Bradstreet. It stands for Data Universal Numbering System, which is used to access a company’s credit profile.
The credit bureau copyrighted the numbering system in 1962. Since then, it has become the standard numbering system for identifying businesses globally.
Companies you work with can look up your business using your DUNS score. It’s linked to your credit profile at Dun & Bradstreet.
What is Dun & Bradstreet?
Dun & Bradstreet is one of the three major business credit bureaus, but the only one dedicated to business credit. Experian Business and Equifax Small Business are the other two.
The company is one of the oldest in America, dating back to 1841. It began as the Mercantile Agency and helped merchants determine the creditworthiness of potential customers when extending credit.
In 1994, the US federal government adopted the D-U-N-S number as the principal business identifier. Four years later, it was incorporated as the federal government’s contractor identification code. The D-U-N-S Number was associated with a company’s Live Business Identity, and you could look up D-U-N-S Numbers within the Dun & Bradstreet Data Cloud for various entities.
Companies without a DUNS number cannot do business with the government. While a DUNS number can help businesses in any industry, it’s especially valuable for companies that work with or intend to work with government contracts. A DUNS number is just one of several Bradstreet products.
Why is a D-U-N-S Number important for my business?
A DUNS number isn’t required, but it can help you grow your business in various ways. Here are some advantages of getting a DUNS number to achieve your business goals.
A DUNS number is often a prerequisite for forming partnerships with larger companies. Many business partners will verify your company’s information, such as your company’s legal entity, using your DUNS number.
Many partners will review your company’s DUNS number when negotiating new contracts. When extending vendor credit, certain companies may also review your DUNS number and business credit file.
Getting a DUNS number is an essential step in building your company’s business credit profile. It is directly tied to your credit profile at Dun & Bradstreet.
When you establish a DUNS number, your business is added to the Dun & Bradstreet database, which includes over 100 million companies worldwide. Other businesses and government agencies can use your DUNS number to confirm your enterprise is active.
Once you have a DUNS number, D&B automatically starts a Live Business Identity file, which includes your business credit scores and ratings. As other companies report to the bureau, it gets added to your profile and could improve your business credit score (or lower it if it’s a negative report, such as a missed payment).
You need a DUNS number to get a D&B PAYDEX score. Most vendors will ask for your DUNS number to check your PAYDEX score when you apply for supply credit. You can also get better terms and higher credit limits once you establish good business credit.
Potential lenders also look at your D&B PAYDEX in the DUNS database score when you apply for a small business loan or line of credit. Lenders usually consider your personal and business credit scores when reviewing and approving loans.
While lenders will still consider a loan if you don’t have a DUNS number, it puts more emphasis on your personal credit score. A DUNS number and established business credit can also speed up the loan process.
The DUNS number was phased out as a requirement for federal contracts in April 2022 in favor of a Unique Entity Identifier (UEI). Landowners and producers participating in NRCS conservation programs are exempt from obtaining a DUNS number. The Consolidated Appropriations Act of 2018 exempted certain participants from needing a DUNS number.
Several government agencies require a DUNS number when awarding contracts. While the US General Services Administration (GSA) has stopped using DUNS scores in its System for Award Management (SAM), it is still important for government contracts. For federal contracts and grants, businesses must now obtain a Unique Entity Identifier (UEI) through SAM.gov. Companies aiming to meet specific Environmental, Social, and Governance (ESG) or diversity criteria may also need to obtain a D-U-N-S®️ Number.
How to apply for a D-U-N-S Number:
Before you apply, check to see if your business already has a DUNS number. You can use the D&B lookup tool to search for your company. Preparing early for the application process is crucial. Ensure your registration is current, and review helpful checklists to anticipate the necessary steps for a successful submission. Preparing for the information requested will save time.
Applying for a DUNS number is simple. After following the sign-up process, it takes an average of 30 business days to get your number.
You can get a number for free unless you want or need to pay for an expedited number. You can pay $229 for expedited service within eight days with DUNSFile™.
Visit the Dun & Bradstreet website and follow these steps to apply:
Step 1: Identify Your Company Needs
Choose the option that best fits:
- I have a US-based business.
- I have a Canada-based business.
- I’m an Apple developer.
- I’m a US Government Contractor or Grantee.
- I need a UFI to register with the FDA.
Step 2: Provide Information About Your Business
To obtain a DUNS number, you must provide your legal business name, contact details, and primary industry information. You can obtain a DUNS number by calling a toll-free telephone number: 1-(866) 705-5711. You can also apply on the Dun & Bradstreet company website.
During this step, you’ll provide the following information about your business:
- The legal name of the company.
- Your business’s physical address. Each business location requires a separate DUNS number if you operate multiple locations.
- Business phone number.
- Name of the business owner(s), president, or CEO.
- Your business’s legal structure (sole proprietorship, partnership, LLC, S-Corp, or C-Corp).
- The year the business was established.
- The primary industry of your business.
- The number of employees (full-time and part-time).
Step 3: Choose the Free or Paid Version at Checkout
When checking out, the application will ask if you want to pay for the expedited process. You don’t need to pay for the service.
Step 4: Authenticate Your Business with a D&B Representative
A representative from Dun & Bradstreet might contact you to verify the information you provided. The process is completed once you authenticate your business. Dun & Bradstreet will send you an email with your D-U-N-S number.
After applying, it may take 2-3 days to obtain a DUNS number. You can pay for expedited processing to receive your DUNS number within eight business days. Once you have a DUNS number, you must register annually on SAM.gov. Depending on your business size, online registration on SAM.gov takes about 30 minutes to complete.
After registering, you can use the free D-U-N-S Manager app to manage your company’s live business identity and request updates.
Frequently Asked Questions
Here are the most common questions about D-U-N-S numbers.
How do I use my D-U-N-S Number to build business credit?
A DUNS number doesn’t establish or build business credit on its own. However, it provides access to a credit profile to help you grow your business credit. You should also create a business bank account to separate your business and personal finances.
The DUNS number uniquely identifies business entities on a location-specific basis, ensuring tailored identification according to geographical locations for business verification and legal compliance.
One of the main ways to do this is with supplier credit, also known as trade credit. Many vendors that sell business supplies offer credit to businesses.
The most common form of trade credit is net-30 terms, which means you have 30 days from the invoice date to pay. Trade credit helps businesses get the supplies or services needed to meet customer orders and have the cash flow to pay off the invoice.
When opening a net-30 account, look for vendors that report to business credit bureaus like Dun & Bradstreet. Many of these vendors require a DUNS number to open an account.
Once you start buying on credit and paying your invoices, the vendor sends reports to the bureau. A positive payment history will help improve your business credit score and ratings.
It’s vital to make on-time payments, as late payments create a negative report that could lower your score, even if it’s just a day or two past the due date. Conversely, paying the invoice off early will typically have a more positive impact than simply paying on time.
A DUNS score can also help access business credit cards, loans, and lines of credit. Again, ensure the financial institution reports to Dun & Bradstreet. Positive payment history and credit activity will also help improve your credit profile.
You can also access your credit profile using your DUNS number. While you must pay for a business credit report, monitoring your scores and ratings can help you identify incorrect reports and create a plan of action to grow your credit history.
How much does a D-U-N-S Number cost?
Getting a DUNS number is free unless you pay for the expedited service, which is $229.
Is a D-U-N-S Number the same as an EIN?
No, an Employer Identification Number (EIN) is your business’s federal tax ID. An EIN is required for tax purposes and used to file tax returns, while a DUNS number is used to assess a business’s financial health.
A DUNS number is issued by Dun & Bradstreet, while the IRS issues an EIN. While the two numbers are different, they serve as unique identifiers for your business. Either number can be considered your business’s equivalent to a Social Security number, as they’re connected to your business credit and history.
Do I need a federal tax ID to get a D-U-N-S number?
No, you are not required to have an EIN to get a DUNS number. Dun & Bradstreet will use alternative identifiers to authenticate your business and register the company.
It will instead use:
- Your business name.
- Your business’s legal entity structure.
- The year you started the business.
- Name(s) of the business owner(s).
- The business address, business number, and email address.
- Industry.
- The number of employees.
Is my business required to have a D-U-N-S Number for federal contracts?
There is no legal requirement to have a DUNS number to start or run a business. However, in 2022, the United States government switched from using DUNS numbers to Unique Entity Identifiers (UEI) for business identification.
However, some companies and government agencies will require a DUNS number when doing business with them. Although no business is legally required to have a DUNS number, other companies utilize it to evaluate trustworthiness.
When applying for a D-U-N-S Number, you must specify your business type to help Dun & Bradstreet verify and categorize your organization.
Getting one might be a good idea, even if you don’t need a DUNS number now. It can help you understand your business credit and how to improve and grow it.
Also, as your company grows, more opportunities might arise, such as accessing trade credit or a government contract. In those cases, having a DUNS number and understanding your business credit profile would be helpful.
Getting a D-U-N-S Number – Final Thoughts
Dun & Bradstreet is a crucial business credit bureau, and their DUNS number identification system is a global standard in business. Having a DUNS number in and of itself won’t improve your credit, but it allows you to access your credit profile and do business with companies that report to the credit bureau.
Getting a DUNS number is free and simple. You only need to supply information like the business name, physical location, number of employees, contact information, and industry information. The only drawback to getting a DUNS number as a new or young business is that it can hurt your credit rating until you start building a credit history.
If you have questions about business credit or want to apply for a small business loan. Our loan executives can help you find the best financing options for your credit score and business needs.
