D-U-N-S® Number: What is it and does your business need one?

The Data Universal Numbering System—or D-U-N-S Number for short—is a unique nine-digit number, provided by Dun & Bradstreet (D&B), that can be used to identify a single business entity and help establish business credit.

But you might be wondering, does your business need a D-U-N-S Number? If so, how do you get one? Keep reading to learn more.

What you’ll learn:

• A D-U-N-S Number is a nine-digit number assigned by D&B as a way to identify businesses. 

• Lenders, business partners, suppliers or vendors may access your D-U-N-S Number to understand your business’s credit history and financial health.

• You can get a D-U-N-S Number for your business by using D&B’s online application or via phone.

A D-U-N-S Number is a unique identifier for businesses. D-U-N-S Numbers are nine digits long and assigned by D&B—one of the three major business credit bureaus.

A D-U-N-S Number is linked to a D&B business credit report and profile, which can give an accurate picture of a business’s financial health. Different parties may access a business’s D-U-N-S Number, such as:

• Potential lenders

• Prospective business partners

• Vendors

• Suppliers

Once D&B assigns a D-U-N-S Number, a business profile is created in the database. This profile includes some of the following business information:

• Business name

• Business address

• Business phone number

• Business type

• Number of employees

• Payment history

This information shows companies that are considering working with you how creditworthy your business is.

Prospective lenders, suppliers, vendors and potential business partners often use D-U-N-S Numbers to get a clearer picture of a business’s financial strength. Though businesses aren’t required to have a D-U-N-S Number, it’s often required when bidding on federal, state or local contracts. A D-U-N-S Number also gives you insight into how others may view your business’s overall financial health.

Additionally, a D-U-N-S Number can help you establish and build your business credit score. That’s because once you have your number assigned, your payment activity gets reported to the business credit bureaus. This helps generate your PAYDEX business credit score. 

Creditworthiness plays a key role for businesses trying to obtain a line of credit or insurance because it generally leads to lower rates. A good business credit score could additionally lead to more favorable payment terms with vendors. It could also give you more time to pay your invoice after receiving goods and services, which can go a long way toward helping you improve and manage your cash flow. 

Beyond establishing business credit, a D-U-N-S Number also carries the benefit of keeping your business and personal credit separate. So you won’t have to depend on your personal credit when applying for a business credit card or searching for funding. And if you plan to deduct business expenses during tax season, you’ll need to keep your business and personal finances clearly separated, as mandated by the IRS.

Getting a D-U-N-S Number is free, unless you choose to expedite your request. Nonexpedited requests typically take up to 30 business days to process, while expedited requests—which cost $229—usually take up to eight business days. Here’s a look at how the process typically works.

1. Start by checking to see whether your business already has a D-U-N-S Number by using the D-U-N-S Number Lookup tool to verify whether you’re in the database.

2. If your business isn’t in the database, you can follow the prompts on the D&B website. Alternatively, you can apply over the phone by calling 1-866-705-5711.

3. You’ll probably need to provide specific details about your business, including your business’s legal name, address and contact phone number, type of industry, legal structure, number of employees and the name of the business owner, president or CEO. 

4. Once you have entered all of the required information, you can check out. If you don’t choose the expedited request, there’s no charge.

5. If D&B requires more information, a representative may get in touch with you. Otherwise, you can expect to receive your D-U-N-S Number via email.

While they’re both nine-digit identification numbers, an EIN—employer identification number—is different from a D-U-N-S Number. Unlike a D-U-N-S Number, an EIN is issued by the IRS to identify a business for tax purposes—you could think of it as a Social Security number for your business. Your EIN can be found on your tax documents, and you’ll often need to use it for making business changes, such as opening a new business bank account.

Unlike EINs, D-U-N-S Numbers are issued by D&B and are attached to your business’s credit profile. These standardized numbers are used to help identify your business, track credit history and run background checks as needed.

The majority of business types are able to obtain a D-U-N-S Number. These include LLCs, large corporations, partnerships, sole proprietors and S-Corps. But it’s important to note: If your business plans on working for a government agency on a contractual basis, you’ll probably need to provide your D-U-N-S Number as a condition of getting hired.

The D-U-N-S Number application process is the same for all businesses, regardless of size. And because obtaining a D-U-N-S Number helps establish your company’s credit history, you’ll be better prepared when seeking to secure funding or open a line of credit. You may even enjoy faster approval times, with a lower interest rate.  

Having a D-U-N-S Number enables business partners, lenders, suppliers and vendors to learn more about your business and make more informed decisions based on what’s shown in your D&B credit profile. Obtaining a D-U-N-S Number is also a way to build your business’s credit score and prove your creditworthiness.

And having a creditworthy business can potentially open up more opportunities and lead to more favorable lending terms. If you’re looking to improve your business’s credit, you might also consider a business credit card. Check out Capital One’s business credit cards to find one that meets your needs. Check to see if you’re pre-approved, with no impact on your personal credit score.