What is Duns Number and How to Get One for Your Business?
What is the DUNS number and how does it work? Is a DUNS number the same as an employer registration number? How can I get one for my business? If you too have the following questions, you have come to the right place. Here we will look at the DUNS number in detail. So, let’s begin.
What is DUNS Number?
DUNS stands for Data Universal Numbering System. It is a distinctive nine-digit number for a business issued by the renowned credit agency, Dun & Bradstreet.
Dun & Bradstreet is a leading business credit bureau helping companies since 1837. The company provides global business information and valuable insights that enable businesses to gain the trust of their potential partners and customers.
Today, a Data Universal Numbering System number has become synonymous with a unique business identification number. Just like a social security number card, this number too reveals a lot of information about your business, including your credit score, credit history, etc.
How Can a DUNS Number Help You?
Now that you understand what is duns number is, it’s time to move on to the next section, i.e. how can this number help you?
Broadly, having a Data Universal Numbering System number can help you in 3 ways:
- Establish business credibility: The DUNS number showcases the credit profile of your business. This profile is very important and comes in handy when vendors or suppliers are looking up your business to assess your credibility. With your credit profile, they can view your credit history. Based on this, the lenders can decide whether or not they wish to lend money to your business.
- Protect your personal creditworthiness: If you do not have a Data Universal Numbering System number linked to your business credit profile, you will have to depend on your personal credit for business purposes. And this can damage your personal credit, especially if you have a heavy amount of business debt or make late business payments.
- Secure longer terms with suppliers: If you have a Data Universal Numbering System number that showcases your creditworthiness, you can easily secure longer trade terms. And this includes up to net-90 day terms. So make sure to establish a good credit history that is linked to your DUNS number for best results.
How to Apply for a DUNS Number?
The most common question that people have apart from what is DUNS number is how to apply for one. Thankfully, applying for this number is pretty straightforward and is done through the official Data Universal Numbering System website.
All the businesses that are located in the USA may request a DUNS number for free. They can have a representative of the company apply for the number, which is typically obtained in up to 30 days. Alternatively, businesses can apply for the same and obtain it within 24 hours at zero cost, if applied as a part of a government contract.
Moving on, the following information is required when applying for a Data Universal Numbering System number for a business.
- Legal company name
- Name of company headquarters and address
- Doing Business As, i.e. DBA or any other name by which the company is recognized
- The physical address, including the postal codes
- Mailing address, if it is separate from the physical address
- Contact details of the business
- Contact name and title
- Number of employees working within the company
- Whether or not it is a home-based setup
It is important to note that a Data Universal Numbering System number is specific to each physical location. Therefore, if a business is set up in various physical locations, it will require separate numbers for each location.
Is a DUNS Number the same as a Federal Tax ID Number?
Many people do not fully understand what is DUNS number and often confuse it with a Federal tax ID number or individual tax ID number. However, the two are not the same.
A Data Universal Numbering System number is meant for establishing the creditworthiness of a business whereas a tax ID number is issued by the IRS and is meant for tax identification purposes.
Understanding what is DUNS number and getting one for your business is important for having a business credit report. With this, the consumers, lenders, and potential partners can easily assess your company information and business credit report and evaluate your financial standing at any time.
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