Establishing business credibility is key if you’re ready to grow and sustain your business. But just how does a small business begin this process? It all starts with a nine digit number, known commonly as a D&B number or DUNS number.
You need a DUNS number for many reasons. If you want to begin applying for government contracts, you will need a DUNS number as part of the application process. If you want to apply for a business loan, you will need a DUNS number. And if you simply want to apply for a business credit card, you guessed right–you will need a DUNS number. Even some businesses will only partner with other companies possessing a DUNS number. Afterall, a DUNS number will show all of these institutions the legitimacy of your company quickly.
Whether you are ready to begin applying for government contracts, funding or partnering with established businesses, having an established DUNS number ready will show that you are serious about the growth of your business.
What is a DUNS number?
Also known as Data Universal Numbering System, a DUNS number is like a social security number for your business. And much like your personal social security number, how you use your DUNS number will determine the viability of your business.
A DUNS number is generated by Dun & Bradstreet, a company dedicated to identifying the business performance of companies internationally.
How Do I Get a DUNS number?
The first step to apply for a DUNS number. On the website, you can check the database to see if a DUNS number is already active for your business. If one is not, you can apply for free. Within two business days, your number will be generated.
Once you have a DUNS number, you can begin the process of applying for credit and applying for government contracts.
How Can a DUNS number impact how I do business?
A DUNS number will help establish the credibility of your business.
When you are applying for a line of credit or a loan, lending institutions will evaluate your business’ credit report as well as any other data available. To consider your company for capital, lenders will analyze your company’s income and also search for lawsuits, liens, judgments, and any other information that they consider important. Financial institutions will use this information to determine if your company is creditworthy as well as the type of loan products they can offer.
Government agencies who work with business owners use their DUNS number in the vetting process. Just like financial institutions, government agencies will analyze a company’s performance. The data these agencies are able to gather through your DUNS number will help them make a decision to partner with your company.
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In addition to making it possible to apply for funding and government contacts, DUNS is recognized by companies and governments all over the world. With a DUNS number, these institutions can easily assess the risk of working with your business.