How and Why You Need a DUNS Number

in steeming •  3 years ago  (edited)

A Data Universal Numbering System (DUNS) number is the Social Security Number in the business world. It reveals details about a business’ track record gathered by Dun & Bradstreet credit bureau. Created, copyrighted and issued by Dun & Bradstreet, it is secured upon successful recognition of a business. A DUNS number has become the standard measure to establish and validate a business’s credibility globally.

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Who is Dun & Bradstreet?
Formerly known as the Mercantile Agency, Dun & Bradstreet was founded by Lewis Tappan, to aid merchants in proving their creditworthiness. Being one of the oldest companies in the USA, D&B today handles 265 million businesses globally, out of which over 100 million businesses have successfully been verified with and allocated a DUNS number. Further, the federal government made getting a DUNS number its primary criteria for business identification in 1994.

DUNS number vs. EIN
Unlike an Employer Identification Number (EIN) issued for federal tax identification, a DUNS number, while also being a nine-digit number providing business identification, is sought for purposes of reporting business credit and establishing creditworthiness.

Why You Should Get A DUNS Number

•EIN is temporary and can change over time, whereas a DUNS number is unique in identifying a business and stays consistent.

•A given business can be affiliated with multiple EINs; a DUNS number, on the other hand, is reflective of a one-on-one relationship with an enterprise.

•The verification process to get a DUNS number is more extensive and thorough, and the number is issued only after Dun & Bradstreet confirms an enterprise’s existence through multiple streams.

•Unlike an EIN, a DUNS number is required by all kinds of businesses.

•While an EIN is US specific, a DUNS number offers global coverage.

Reasons to get a DUNS number

•Establish your business profile

•Protect personal credit

•Easy affiliation with the government

•Secure longer-term contracts with suppliers

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