AllBusiness.com
A woman helps her friend apply for a DUNS number

What Is a Dun & Bradstreet (DUNS) Number? A Guide to DUNS Numbers

FinanceOperations

If you’ve ever applied for a business loan, secured a government contract, or worked with large suppliers, chances are you’ve come across the term “DUNS number.” This nine-digit identifier, assigned by Dun & Bradstreet, plays an important role in the business world. Think of it as a passport for companies—establishing their identity and global credibility.

For businesses, the DUNS number is often a requirement for partnerships, funding, or contracts. Suppliers, lenders, and partners frequently use it to assess a company's reliability and financial health. By looking up a DUNS number, you gain access to critical information about a company’s credit history, financial stability, and operational track record. For small businesses, acquiring and maintaining a DUNS number is especially important when competing for larger contracts or entering international markets.

This article will break down everything you need to know about the DUNS number: what it is, how to look it up, and why it’s vital for businesses across various industries. We’ll also explore how a DUNS number differs from credit bureau scores and conclude with actionable tips on how to make the most of this powerful business tool.

What Is a DUNS Number?

A DUNS number, or Data Universal Numbering System number, is a nine-digit identifier issued by Dun & Bradstreet. It serves as a universal standard for tracking and identifying businesses globally. More than just a numerical label, the DUNS number links to a detailed business credit file, providing insights into a company’s financial performance, payment history, and reliability.

Businesses across 190 countries use DUNS numbers for a variety of reasons, including securing loans, establishing partnerships, and complying with government regulations. It’s a must-have for any organization looking to engage in large-scale or cross-border transactions.

A DUNS Number is also essential for small businesses to establish credibility, build a business credit profile, and access opportunities such as government contracts, international trade, and favorable supplier relationships.

Why Should You Look Up a Compay's DUNS Number?

Looking up a DUNS number can help you make better business decisions by offering a wealth of information about a company. Here are some reasons you might look up a company’s DUNS number:

  • Evaluate Financial Stability: Assess whether a company has the financial resources to meet its obligations. This is particularly useful for vetting vendors, suppliers, or clients.
  • Verify Legitimacy: Confirm a company’s operational status and legitimacy to avoid fraudulent partnerships.
  • Understand Creditworthiness: Review payment history and financial data tied to the DUNS number to determine a company’s creditworthiness.
  • Streamline Global Trade: Many international businesses require a DUNS number for transactions, making it essential for global partnerships.

How to get a DUNS Number

Applying for a DUNS number is straightforward, and requires two steps:

  1. Submit Application: Apply for a DUNS number through D&B's online application portal. Standard processing is free and typically takes up to 30 business days. For expedited processing, a fee applies, and you can usually receive your number within eight business days.
  2. Verification: D&B may contact you to verify your information. Once authenticated, you'll receive your DUNS number via email.

Maintaining Your DUNS Number

To ensure your business information remains accurate and up-to-date, utilize D&B's DUNS Manager. This free tool allows you to:

  • Update basic business information, such as name, address, and employee count.
  • Upload financial statements.
  • Dispute inaccuracies in your business credit report.

Additionally, D&B maintains up-to-date company records through a combination of automated data collection, manual verification, and direct input from businesses. Here's an overview of their process:

1. Data Collection

D&B gathers information from over 30,000 global sources, including:

  • Public Records: Business registrations, legal filings, and government publications.
  • Proprietary Sources: Data derived from millions of transactional variables, such as purchase and spend data.
  • Data Exchange Partnerships: Collaborations with industry-specific data providers to enhance coverage.
  • Direct Business Contributions: Information submitted by companies through tools like DUNS Manager.

2. Data Verification and Quality Assurance

To ensure accuracy, D&B employs the DUNSRight™ Quality Process, which includes:

  • Automated Checks: Thousands of automated validations to detect inconsistencies.
  • Manual Reviews: Expert analysis to confirm data integrity.
  • Timeliness Assessments: Regular updates to reflect changes in business information.

3. Business Self-Updates

Companies can proactively update their own information using D&B's DUNS Manager:

  • Access and Review: Businesses search for their profile and verify their identity.
  • Update Information: Submit changes to details like company name, address, and financial data.
  • Ongoing Maintenance: Regular reviews to keep information current, especially after significant changes.

4. Continuous Monitoring

D&B continuously monitors business activities to capture events such as:

  • Executive Changes: Updates in leadership positions.
  • Financial Performance: New financial statements and credit activities.
  • Operational Changes: Modifications in business operations or structure.

How to Look Up a DUNS Number

The process of looking up a DUNS number is simple, but accuracy is key:

  1. Visit the Dun & Bradstreet Website: Navigate to www.dnb.com, where you’ll find the tools needed to search for or request and verify a DUNS number.
  2. Use the Search Tool: Enter the company name, address, or other identifying details into the company lookup feature.
  3. Request a Detailed Report: If you need deeper insights, such as financial data or credit history, you can purchase a business credit report through the platform.
  4. Set Up Alerts: Consider using Dun & Bradstreet’s monitoring services to receive updates about the company’s financial status.

Industries That Rely on DUNS Numbers

Certain industries rely heavily on DUNS numbers due to their operational needs and regulatory requirements. These include:

  • Government Contracts: Most federal and state agencies require vendors to have a DUNS number before awarding contracts.
  • Supply Chain Management: Manufacturers and suppliers use DUNS numbers to verify the creditworthiness of partners.
  • Finance and Lending: Banks and financial institutions assess risk using credit information linked to a company’s DUNS number.
  • International Trade: Global businesses often mandate DUNS numbers to facilitate cross-border transactions and partnerships.
  • Technology Startups: Startups seeking venture capital or entering partnerships with larger tech firms use DUNS numbers to establish credibility.

How Is a DUNS Number Different From a Credit Bureau Score?

A DUNS number and a credit bureau score both assess financial credibility, but they serve distinct purposes and are managed by different entities. A DUNS number is a global identifier for businesses, linking to operational and financial data maintained by Dun & Bradstreet. In contrast, a credit bureau score evaluates creditworthiness, specifically focusing on lending and repayment behavior.

Credit bureau scores, commonly known as credit scores, are numerical representations of an individual's or business’s creditworthiness. Scores range from 300 to 850, with higher scores indicating better financial responsibility.

Standard Credit Score Ranges

  1. 300–579: Poor: Borrowers in this range are considered high-risk and may face challenges getting approved for credit. Likely outcomes: Higher interest rates, deposits for utilities, or outright denials for loans or credit cards.
  2. 580–669: Fair: This range indicates subprime borrowers who are considered riskier than average. Likely outcomes: Some approvals for credit with moderate interest rates.
  3. 670–739: Good: Most lenders consider scores in this range as acceptable or average credit. Likely outcomes: Easier credit approvals and competitive interest rates.
  4. 740–799: Very Good: Borrowers in this range are seen as low-risk. Likely outcomes: Access to better financial products and lower interest rates.
  5. 800–850: Excellent: This is the ideal range, indicating exceptional credit management. Likely outcomes: The best terms, lowest interest rates, and most premium credit products.

The three major credit bureaus that generate these scores are:

  • Experian: Provides credit reports and scores for both individuals and businesses, offering insights into credit use and risk assessment.
  • Equifax: Tracks credit activity and issues scores widely used by lenders for loans, mortgages, and other financial products.
  • TransUnion: Monitors credit behavior and provides reports that help creditors evaluate risk.

While a DUNS number is globally recognized and essential for large-scale business transactions, a credit bureau score is more regionally focused and tailored to lending decisions. Together, these tools help paint a comprehensive picture of financial stability and reliability.

Tips for Using DUNS Numbers Effectively

  • Keep Your DUNS Number Current: Ensure your company’s profile is up to date with accurate information in Dun & Bradstreet’s database.
  • Monitor Changes: Use monitoring services to track updates in your own or other companies’ financial profiles.
  • Leverage in Contracts: Include DUNS numbers in vendor or partnership agreements to ensure transparency and trust.
  • Educate Your Team: Train your team on the importance of DUNS numbers for verifying financial and operational credibility.

Why DUNS Numbers Matter

A DUNS number might seem like just another identifier, but it’s a critical part of modern business operations. Whether you’re verifying the legitimacy of a partner, assessing financial stability, or ensuring compliance with regulations, this nine-digit number plays a crucial role in enhancing the vetting process and reducing risks.

By knowing how to look up and create and use a DUNS number, you’re equipping yourself with the tools to make smarter business decisions. Whether you’re a small business owner looking to expand your reach or a corporate executive navigating complex supply chains, understanding the importance of this identifier can save you time, money, and potential future headaches.

Additional Business Resources

Related Articles:

Profile: Dominique Harroch

Dominique Harroch is the Chief of Staff at AllBusiness.com. She has acted as a Chief of Staff or Operations Leader for multiple companies where she leveraged her extensive experience in operations management, strategic planning, and team leadership to drive organizational success. With a background that spans over two decades in operations leadership, event management at her own start-up and marketing at various financial and retail companies, Dominique is known for her ability to optimize processes, manage complex projects, and lead high-performing teams. She holds a BA in English and Psychology from U.C. Berkeley and an MBA from the University of San Francisco. She can be reached via LinkedIn.