What Is a DUNS Number and How to Apply For It?

Overview:

Starting a business involves managing multiple parts, from obtaining necessary licenses to hiring the right set of employees. Amidst all the requirements, one important consideration could be obtaining a DUN and Bradstreet Numbers ( DUNS ). DUNS number is a unique 9-digit identifier that helps small businesses to apply for loans and other financial products in a more simplified way. This guide will walk you through what DUNS number is and the steps to acquire a DUNS number.

What is Dun & Bradstreet?

The credit bureau Dun & Bradstreet has assigned a unique 9-digit number in the format “xx-xxx-xxxx” typically known as the DUNS number. Dun & Bradstreet assesses the financial health of a company through various indicators, including the Paydex score (timely bill payment), delinquency score, failure score, and other key ratings and predictive metrics. Dun & Bradstreet falls under the category of one of the three major business credit bureaus accountable for issuing the DUNS numbers. The acronym DUNS stands for Data Universal Numbering System. Once assigned, your DUNS number is permanent and does not expire, nor can it be reassigned to another entity.

How can a DUNS number help you?

A DUNS number helps businesses establish a business credit history, which is essential for accessing better financial products and borrowing larger amounts. Personal loans can be used to fund a business, but they usually have lower limits, often between $20,000 and $100,000. On the other hand, business loans offer a much higher borrowing potential. For instance, with an SBA 7(a) loan, a small business can borrow up to $5 million. Acquiring a DUNS number is a step that puts your company in a better position for more favorable loan opportunities.

Benefits of having a DUNS number:
A DUNS number can offer multiple advantages to your business:

• Enhances the credibility of a business making it more professional and reliable.
• Simplifies the application process for grants, certifications, and other programs.
• Helps your business stand out as a legitimate entity.

Steps to Apply for a DUNS number:

1. Check if you already have a DUNS number:
   Before you apply for a DUNS number, verify whether your business has an existing DUNS number using the DUNS number lookup tool. All you need to do is provide the legal name of your company along with some additional details to confirm if a number has already been assigned or not.
2. Initiate the application process.
   If your business does not have a DUNS number, visit the Dun & Bradstreet website to begin the application process and request your number.
3. Provide the required information:
   Complete the application by providing basic information about your business, including its legal structure, primary industry, and legal name. If there is a problem with verifying your information, a DUNS representative may contact you for clarification.
4. Wait for your DUNS number:
   After your application is submitted, you’ll get an email with your DUNS number.
   If your business is only online or located in one location, you need only one DUNS number. Businesses that have more than one location will require a DUNS number for each location. If you need extra help, call Dun & Bradstreet at 1-866-990-5845, or use the email and live chat support.

Who needs a DUNS number? What is the duration for obtaining a DUNS number?

Start-up founders without established business credit benefit most from having a DUNS number, though businesses of any size or age can use one. The standard processing time for applications is 30 business days, but paying an additional $229 expedites the process to 8 business days. Expedited services are rarely necessary unless you’re ready to apply for or receive a competitive grant or loan.

Do You Need a DUNS Number for Your LLC?

While an LLC does not technically need a DUNS number, it is a good idea to obtain one. A DUNS number helps to build and establish business credit, although an EIN also can do this. For example, using a business credit card tied to an EIN and keeping it in good standing will add to the credit history. Of course, having a DUNS number is a good starting point, but oftentimes, an EIN is better for the long term.

To sum up! Not all businesses need a DUNS number, but it does prove useful in establishing credibility and creating business credit while availing financial opportunities. Whether a startup founder or a well-established owner, getting a DUNS number is absolutely free and simple and serves to benefit for a long time. By pairing it with an EIN and strategic credit management, your business can strengthen its financial foundation and better position itself for future growth. You can check out more details on the DUNs website. Click here

About Arnifi

Arnifi is a digital-first Corporate service provider helping companies enter the Middle East region, starting with the UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq, and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience for the entry and scale-up of companies in both the UAE and Saudi Arabia. Discover tailored solutions and strategic partnerships that propel your business forward. Check out at – www.Arnifi.com for more details. You can also check out products and offerings here.