In addition to your business’ credit score, most creditors will also look at your DUNS number (Data Universal Numbering System) when considering a request for loans or credit accounts. Additionally, a DUNS number is also required for certain types of business dealings.
Your business’s DUNS number, or Data Universal Numbering System, is a 9-digit number that is free to acquire from Dun & Bradstreet. Before you apply for one, be sure to check and to see if you already have one. It’s possible that you were assigned a DUNS number if you have received a loan or opened a credit account in the past. If you already have one, check your Dun & Bradstreet profile to make sure everything is reported correctly.
Below, we've listed a few of the ways your DUNS number is used: --
As was mentioned above, they are necessary for certain types of business. For example, if you are looking for a government contract, or if you are requesting a business grant from the government, a DUNS number is required.
If you are a software developer and have plans to develop a mobile app for iOS and sell it through the Apple Store, a DUNS number is required.
A DUNS number can be used for international business, which is an advantage it has over a US Government tax ID. The European Union will recognize a DUNS number, but not a US Government tax ID number.
Considering the advantages of having a DUNS number, and the fact that it's free, we recommend you apply for one regardless of the type of business you own. Remember, your DUNS number is also associated with your business credit score (which you can read about here) because creditors will factor in business history that involved your DUNS number.
If you have any questions about your small business, please contact us.