Do you plan on getting financing for your business?
If so, how would a supplier, vendor, bank or lender get a better understanding of your business’ credit history and creditworthiness?
Today, we are going to dive into the D-U-N-S® Number and why your business needs one. The greatest benefit of having a DUNS number listing for your company is that anyone looking to assess whether your company is creditworthy will pull your Dun & Bradstreet report to find out.
If a DUNS Number listing for your company doesn’t exist then your personal credit will most likely be considered with business credit decisions, and you don’t want that.
Banks almost totally rely on your PAYDEX® score and D&B Score when they are checking your business credit file via the D-U-N-S® Number.
Most small businesses don’t have enough of a file established. If the file isn’t complete and there isn’t enough credit history, they will go back to your personal credit as well.
What is a D-U-N-S® Number?
It’s a 9-digit number issued by Dun & Bradstreet to identify a business in its database.
Having a DUNS Number essentially means that your company has a file listed in D&B’s database. But that file could be incomplete if there is little or no information in your business credit file. To start building your D&B credit file be sure to check out our Funding Machine course.
D&B collects its information from third-party sources such as public records, web-mining, reports from vendors, etc. Unfortunately, some of these resources don’t always provide the most accurate or up-to-date information. However, you can always correct and update any basic mistakes by logging into iUpdate.
Why get a D-U-N-S® Number?
Like your social security number identifies you, a DUNS Number enables a business to establish its own unique credit identity – A DUNS Number is linked directly to a company’s D&B business credit report. With a DUNS Number, banks, suppliers and lenders can check a company’s business information & creditworthiness for faster decision making.
Many lenders and business credit providers use pre-screening with D&B data to identify potential business customers. These pre-screened offers can be based on the information that is on your business credit file.
How do you get a D-U-N-S® Number?
You can get a DUNS number by request from Dun & Bradstreet. But did you know your business may already have one?
A D-U-N-S® number can also be created for a business when a supplier, vendor or financial institution requested information about that business through Dun & Bradstreet and no data could be found. At that time, D&B may have generated one for the company without the business owner’s permission or knowledge.
To check if your company already has a DUNS number check their website to get step-by-step directions.
If you find that you already have a DUNS number then the next step is to check your D&B business credit report to ensure the information being reported about your company is accurate and up to date. To view and update your existing business credit file requires that you register with iUpdate which is a free tool provided by D&B.
If you own a business or plan on starting one you should consider obtaining a D-U-N-S® number listing. Remember, as with any business credit reporting database, getting a D-U-N-S® Number creates a public footprint that lets others find out about your business.
If you already have a D-U-N-S® Number, and ready to start building your business credit, check out our Funding Machine. You’ll gain access to the steps necessary to start building business credit in your business name the right way.