Getting a Data Universal Number System, most commonly known as DUNS number, is the first step in order to register as an organization applicant in Grants.gov.
If you've just heard this term and are confused about what it is, don't worry, we've got your back.
In this post, we'll share what is a DUNS number actually, why do you need a DUNS number, and many other questions related to the DUNS number that you might have.
So ready to dive in the post?
Let's go.
What is a DUNS Number?
DUNS number is a unique nine-digit number that helps identify a business organization on a location-specific basis.
The number is created by credit bureau Dun & Bradstreet, which is one of the three major business credit bureaus of the world. DUNS number is known as the standard numbering system for a business all across the globe.
Just as an SSN (Social Security Number) furnishes information about you like your bank account, tax returns, credit score, residence, etc., a DUNS number tells almost similar information about your business in the U.S.
However, the DUNS number is required by institutions only, while individuals need not apply for it.
What Does a DUNS Number Look Like?
A DUNS number is unique for a business. This nine-digit number is random, and the digits have no apparent significance.
The number is many times formatted with dashes in-between to make it easily readable.
For example, 160494898 can be formatted as 16-049-4898, although the dashes are not an essential part of D&B's official definition.
Why Do You Need a DUNS Number?
The DUNS number provides information about a company, including its title, financial data, trade name, payment history, economic status, and a lot more.
Below are the ways in which the DUNS number helps you as a business organization:
- Helps Establish Creditworthiness: As the DUNS number is directly attached to the credit profile that D&UB creates for a business, it establishes business creditworthiness. Most vendors and suppliers refer to this number to check a business credit profile before considering lending to a business or offering a business trade credit.
- DUNS Safeguards Your Personal Credit Profile: In case a business doesn't have a DUNS number, they will depend more on the personal credit of the business owner for various business purposes. Thus, it will make your personal credit more vulnerable and harm your personal credit when keeping high amounts of business debt.
- Bid with the Government Contracts and Companies outside the U.S: Companies engaged in business all over the world and government institutions as well, perform risk assessments of their potential partners and require a DUNS number to check their credit profile. Moreover, businesses require this number while submitting a bid.
- Ensures That Other Businesses Get Accurate Information: When other businesses have more accurate information about your business, they are more likely to get on longer terms with your business.
Is The DUNS Number The Same as EIN?
Although both these numbers are nine-digit numbers and identify a business, they still offer different purposes.
DUNS number is affiliated with a company's current identity derived from the D&B data cloud. It speaks more about the creditworthiness of a business. Other businesses mostly use the DUNS number to access the live identity of other businesses.
On the other hand, EIN is issued by the IRS and is used solely for tax purposes.
How Much Does a DUNS Number Cost?
DUNS number is free and can easily be obtained through the DUNS website.
Businesses based in the U.S may go on this website and place a request for a DUNS number for free. If you need your number quickly, you can use the DUNS file service to get it in almost five business days, by paying $229 as their service charge.
You need to share the following information while applying for the DUNS number.
- Legal entity name
- Organization address
- Name of the CEO
- The legal structure of the organization
- Year the business came into existence
- The primary type of business
- Total number of employees
A DUNS number is specific to a physical location, so a company needs a separate DUNS for every location they are involved in the business.
As an integral part of the verification process, D&B will send a representative to physically verify the details you have provided on their site.
Is DUNS Number Public Information?
Yes. As the DUNS number is designed to be shared publicly as a unique identifier for a business, it can be searched by any organization in the D&B database online.
To find a company with a DUNS number, go to the D&B website, enter the business name, city, and state in the box provided. Click the search button to get the DUNS number of the said company.
What Countries Use DUNS Numbers?
DUNS is a global number and is currently assigned to many businesses in over 200 countries worldwide.
This is an international numbering system and is assigned by the American company D&B.
The countries using this number include the U.S, Australia, and the European Union.
Do all Companies Have a DUNS Number?
Every company doesn't require registering for a DUNS number and does not equate to a Global Tender Platform.
DUNS is only used as a Universal Standard for identifying a business.
It is usually used by various companies and other government institutions to help perform risk assessments of their potential business partners to perform a vetting process.
Moreover, business organizations, including sole proprietorships, corporations, partnerships, non-profit organizations, are required to get the DUNS number when applying for a grant.
However, as obtaining a DUNS number is free, and provides a business with creditworthiness, there's no harm in getting a DUNS number.
Conclusion
The DUNS number is basically used to identify a business registered with Dun & Bradstreet only.
Businesses listed with other credit bureaus like Experian, will not be found on the D&B database, as individual credit bureaus maintain unique databases.
With the growth of a company, the amount of information needed to be shared with customers, prospects, and suppliers also grows.
The DUNS number is very well used by the companies as a base for their data and maintains a single source of information across the organizations to maximize efficiency and simultaneously reduce errors.
