Explore why a DUNS number is a big deal for small businesses.
If you’re looking to get certain things done for your growing business, you may very well need a Data Universal Numbering System (DUNS) Number. A DUNS Number isn’t just a useful method for getting your business noticed and gaining credibility – it’s also a requirement if you plan to secure certain types of funding.
What is a DUNS Number?
The Data Universal Numbering System is the product of Dun & Bradstreet, a giant in the world of business data and analytics. Dun & Bradstreet notes that around 90% of all Fortune 500 companies work with them in some capacity, which likely includes having a DUNS Number.
A DUNS Number is a nine-digit number unique to each business. As the IRS explains, businesses can have multiple DUNS Numbers. These identifiers are specific to individual physical locations like branches, divisions, and headquarters. While the preference would be to operate with as few numbers as possible, you’ll need additional DUNS Numbers if particular departments or divisions within your company are applying for federal grants.
Having a DUNS Number is part of another service Dun & Bradstreet provides – Live Business Identity. This tool gives a comprehensive, up-to-date view of your business, offering insights based on data and analytics. Dun & Bradstreet will occasionally reach out to verify that all information tied to your DUNS Number is accurate and current.
To minimize confusion, it’s recommended that you assign a single point of contact for all inquiries related to DUNS Numbers, particularly if your business has multiple numbers for different branches or divisions.
Does Your Business Need a DUNS Number?
According to Dun & Bradstreet, one of the primary functions of a DUNS Number is its use as a reference point for lenders and business partners. Having this identifier gives outside parties a full view of your business, including the names of key officers, contact information, and indicators of financial health. This increases your business's credibility and provides confidence to potential partners or lenders.
A potential partner or lender can use your DUNS Number to access a business credit report, which allows them to make an informed decision about working with you. By the same token, you can use other entities’ nine-digit numbers to learn more about them and decide if you want to work together. This is particularly useful if you’re attempting to form a relationship with a company that operates outside the United States.
Dun & Bradstreet also notes that a DUNS Number can expedite application processes. Because your business credit report and Live Business Identity contain information on your financial health, they may result in quicker approvals for loans or contracts.
If you plan to apply for federal grants or cooperative agreements, you will need a DUNS Number. The federal government uses this identifier to determine your eligibility and obtain accurate data about your business.
The advantages of having a DUNS Number are clear, and there’s no risk to having one, even if you’re not sure you need it. Getting a DUNS Number through Dun & Bradstreet is free and typically takes up to 30 business days. You can complete this process online at the Dun & Bradstreet website or by calling a toll-free number at 1-866-705-5711.
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