Whether you already own a business or are looking to start a new one, a Data Universal Numbering System (D-U-N-S) number helps you make a major impact. The simple reason behind it is that all businesses, no matter how small at some point of their tenure, would require a line of credit. And in order to get a line of credit, you require a D-U-N-S number. You could also perform a D-U-N-S number lookup to learn about potential business partners and make informed decisions before associating with them.
And you may have heard the same from a lot of people. But what exactly is a D-U-N-S number? Is it the same as a federal tax id number? If not, then what is it? And why is it beneficial for your business? Read on to know all about it.
What is a D-U-N-S Number?
In simple words, a D-U-N-S number is a unique nine-digit series of numerals that identifies a business. It is issued by Dun & Bradstreet (D&B) to any business that completes its information profile. Once completed, this profile is added to a comprehensive database with 300 million other companies. This database can be used to help retrieve business information about potential clients, customers and investors.
Established way back in 1963, this system standardizes business information to help banks and other creditors understand the credibility of the business applying for the loan.
What are the Benefits of Having a D-U-N-S Number?
The foremost and possibly the most important benefit of having a D-U-N-S Number is that it is a sure-shot way of kickstarting the process of establishing the credibility of your company. But that is not all. Here are some other advantages of having a D-U-N-S number:
Track Your Credit Report
Your credit report is not just helpful while getting a loan. It can also help you ensure that the business information available is accurate. If it is not, you can easily use the D-U-N-S to update the information about your company before it negatively impacts you.
Helps You Establish Credibility
Credibility plays a major role in determining the success of your business. In simple words, if your potential partners or clients feel you are credible or trustworthy, they would be more than willing to invest or give you business. And having this kind of number for your business is a great way of ensuring it.
Helps You Prevent Bad Debts
If you are an entrepreneur, you would agree with us. One of the worst fears for organisations is to resolve or get out of the bad debt. While there are quite a lot of techniques that would help you get out of it, preventing it from happening in the first place itself is ideal. This is where performing a D-U-N-S number lookup can prove beneficial. It provides you with a list of business credit files of potential customers which helps you avoid risky partnerships.
Bottom Line
Having a D-U-N-S number is of pivotal importance to give you an edge over your competitors in this competitive marketplace. So, take your business to new heights by making use of the D-U-N-S right away!