Dun & Bradstreet (D&B) is one of the major commercial credit bureaus in the United States and provides various data analytics services. That includes assigning DUNS Numbers, which serve as a unique identifier for each company in their system.

Here’s everything you should know about DUNS Numbers, including how they work, the benefits they provide, and how to get one for your business.

What Is a DUNS Number?

D&B created a proprietary system known as the Data Universal Numbering System (DUNS) to identify companies across the globe and compile data on them. It contains contact details, business credit history, corporate entity relationships, and more.

A DUNS Number is a unique entity identifier used to distinguish businesses in the DUNS database. D&B assigns them at the lowest organizational level, so if you own a business with multiple subsidiaries, each can get its own DUNS Number.

Virtually, every business is eligible for a DUNS Number, which can include commercial, non-profit, and governmental entities. Your legal structure doesn’t matter either, as even sole proprietors can sign up for one.

You can think of a DUNS Number as a Social Security number for a business entity. It’s a permanent identifier that sticks with each one throughout its life cycle, even if you change the name, location, or legal structure.

What Is the Purpose of Having a DUNS Number?

Acquiring a DUNS Number for your business provides several significant benefits. Let’s take a look at the most significant ones to consider.

Establish Business Credit

Whether you’ve requested a DUNS Number or not, D&B can gather public information and lender data to create a credit report for your business. However, it’s easier for them to do so once you go through the assignment process.

That’s because a DUNS Number is the most convenient and efficient way to distinguish your business’s activities. They make it simple for D&B to accurately process information from data furnishers and build business credit history for your company.

Remember, DUNS Numbers remain fixed throughout a business’s life. Even if your business grows and you change its name, address, or legal structure, the consistent DUNS Number makes it easy to track you.

For example, say you start your business as a sole proprietor in California, then move to Florida and incorporate. That might make it harder for D&B to recognize that the information a lender reports before and after the changes is for the same entity.

However, if you requested a DUNS Number when you began doing business, the credit bureau would have no trouble connecting the dots.

Check Your D&B Business Credit Scores

You can get your business credit report from D&B whether or not you’ve requested a DUNS Number. If you haven’t yet, you can still look up the information they’ve gathered on you using other identifying details, such as your business name.

However, you won’t be able to check your D&B credit scores without a DUNS Number. While they’re not the only commercial credit bureau out there, D&B provides one of the most popular business credit scores: the PAYDEX Score.

The PAYDEX Score is the closest business equivalent to a FICO personal credit score. It represents how likely you are to pay vendors on time based on your history over the prior two years, and many third parties will check it before doing business with you.

Streamline Credit Applications

While having a DUNS Number isn’t a requirement for all business loan applications, it can make the process easier. Remember, you need a DUNS Number to have a PAYDEX credit score, and lenders may need to check it as part of their underwriting.

Even if they don’t require a PAYDEX Score, DUNS Numbers are a sign to creditors that your business is legitimate and established, which is always helpful in convincing them that you’re creditworthy.

Attract Vendors and Potential Partners

Lenders may or may not check your PAYDEX Score as part of a loan application, but it’s often one of the primary considerations for vendors and potential business partners.

It’s particularly relevant to them since it represents the timeliness of your payments to vendors in the past.

Again, you’ll need to have a DUNS Number to generate a PAYDEX score, so make sure you request one for your company as soon as possible if you’re interested in attracting a potential business partner or receiving extended payment terms from a supplier.

Access Government Contracts

Last but not least, your business needs to have a DUNS Number to access the System for Award Management (SAM). SAM is the U.S. application that facilitates federal government grant applications and government contract bids.

SAM registration requires a DUNS Number because it’s the easiest way to identify organizations, determine which ones are related to each other, and track their name and address data.

As a result, if you’re interested in doing business with the federal government or receiving financial assistance through one of their federal grant programs, you’ll need to request a DUNS Number before starting the process.

How To Get a DUNS Number

Fortunately, getting a DUNS number for your business is relatively straightforward. Even better, you don’t have to pay for it, so it won’t cost you anything other than the time it takes you to submit the request.

The easiest way to ask for a DUNS Number is through the D&B online form, but you can also call them if you prefer. Whichever method you use, you’ll need to submit the following information about your company:

• Business name and physical address
• The legal name of the business owner or chief executive officer (CEO)
• The legal structure of your organization (i.e., corporation or partnership)
• Company formation year
• Primary business type
• Number of employees, including full and part-time

Once you initiate your request, D&B promises that you’ll receive your universal identifier within 30 business days. If that’s too long, you can pay a $229 fee to expedite the process, in which case you’ll get it within five business days.

Do All Companies Have a DUNS Number?

Not every company has a DUNS Number, but every company is eligible for one, whichever business model or legal structure the owner chooses.

If you don’t request one for your company, D&B assigns one to you after they’ve gathered enough information to verify that your company exists. To do so, they need to receive two or more sources of evidence indicating your business is legitimate.

Because D&B gathers information from many different data furnishers, they could learn about your company and assign you a DUNS Number without your knowledge.

For example, you might register your business with the Secretary of State and set up a checking account for it with a local bank. If both of them report those interactions to D&B, they might give you a DUNS Number.

When you request a DUNS Number for your business, D&B will automatically double-check whether they’ve assigned you one already.

What Is the Difference Between a DUNS Number and an EIN?

There are several commonalities between a DUNS Number and an Employer Identification Number (EIN). They’re both nine-digit numbers used to identify businesses that you can request for free. However, the similarities end there.

DUNS Numbers come from Dun & Bradstreet, a commercial credit bureau. They remain fixed for the life of your business and primarily distinguish your business for credit purposes.

For example, you need a DUNS Number to generate a PAYDEX Score, which lenders and vendors may want to check before working with you.

Conversely, you request an EIN from the Internal Revenue Service (IRS). You may also need to get a new one later in the life of your business if you change its legal structure, and they’re generally only for tax purposes.

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