Although Broke finance has been tailored to serve those interested in becoming better at handling personal finances, going forward I thought it would be good to incorporate posts relating to business. Business will not become the focus of my content, however I feel including business basics will be a nice way to add value to the website. In particular, I want to highlight a major aspect of starting any business which is acquiring a DUNS number.
If you are like many who decide to start a business, you likely already formed your LLC, applied for an employer identification number (EIN) and maybe even have a business account established for your new endeavor. But you may be missing a key piece of the puzzle in a DUNS number. Dating back to the early part of the 1800s, Dun and Bradstreet based in Short Hills, NJ has been gathering credit data on companies small and large. What started out as a small enterprise grew to become the benchmark of business data collection for over 280 million businesses worldwide.
Think of a DUNs number in the same fashion as a social security number. It is a nine digit number created by Dun and Bradstreet in 1963 used to track the credit history of a business. In order to obtain business financing you will need to have a number attached to your company. Similar to a FICO score for a human, a business will have what is known as a Paydex score ranging from A-F depending on your businesses ability to manage credit. Dun and Bradstreet or DnB is not the sole business data collection company but the largest. Others like Experian Corporate or Equifax Business serve the same purpose but do not communicate with each other.
How Do I Get A DUNs Number?
It is quite simple go to DnB.com for more information. Create a profile for your business and in less than 30 days (free method) or five days if you pay for DnB’s credit builder service your business can begin to operate and report to DnB like a Fortune 500 enterprise. You can also update company info as you please and research other companies registered with DnB in addition. Just to be clear, a DUNs number is not mandatory for operating a business and some business do fine without one altogether. But if you are in the infancy stages of your business it will not hurt to get one.