What Is Dun & Bradstreet?

Dun & Bradstreet is an organization that offers credit reports and evaluations for businesses all over the world. They are a highly respected company in the business world, and the research and evaluations they provide are used by lenders, investors and municipalities to help determine an entities credit worthiness. Many businesses work hard to maintain a high ranking with Dun & Bradstreet, as this can have a profound effect on their ability to obtain loans and operate successfully.

History

Dun & Bradstreet actually started out as two rival companies. They included the R.G. Dun Company of New York City, and the John M. Bradstreet Company of Cincinnati. Both were established in the mid-19th century to help evaluate commercial credit ratings. Each operated independently through the 1930s, though the two companies were fierce competitors throughout this time. As the Great Depression began to severely impact business and the economy, the two companies decided to merge in hopes of surviving the downturn. They formed Dun & Bradstreet and have operated as a single company since that time. As the 20th century progressed, the company continued to grow, becoming a world leader in the credit and financial markets.

DUNS

Dun & Bradstreet is best known for their DUNS numbers, or Data Universal Numbering System. This system, developed in the 1960s, involves a nine-digit identification number which is issued to individual companies, or company divisions. A DUNS number is similar to an employer identification number. There are over 57 million DUNS numbers in existence today, and the company has the capacity to issue up to 800 million unique numbers. Many government agencies throughout the world rely on DUNS numbers to identify businesses for tax, licensing and other purposes. It is free to obtain a DUNS number, and it takes about 30 days.

Paydex

Paydex is a popular tool used by Dun and Bradstreet to rate a company's credit worthiness. It is a number, similar to a FICO score, and ranges from 0 to 100. Companies with a score of 75 or higher are considered to be safe investments. When compiling a Paydex score, D&B looks at how long it takes a company to pay their creditors, their frequency of late or missed payments, and their debt ratios. The Paydex score is used by many vendors and banks to help evaluate a company's credit risk.

DUNS Reports

DUNS Reports are used in conjunction with a DUNS number. They are similar to an annual report, but they are prepared by D&B as an independent observer of a specific company. They include a thorough investigation of a business, and they are used to allow creditors or potential investors to get an accurate look at the company's operations. DUNS Reports include everything from financial statements, debt loads, corporate filings and credit ratings. Some are even so detailed as to include information on the company's buildings and employees, as well as personal histories of principal staff. Often, the DUNS report will contain industry statistics so that evaluating parties can see how the company compares to its competitors.

D&B in the 21st Century

While D&B has a strong company history, it began to lose ground to competitors in the late 20th century. To combat this, the company created its Blueprint for Growth. As part of this growth strategy, D&B plans to narrow its focus to the company's core business groups. They also plan to leverage the strength of the D&B name, create a stronger web presence, and focus more on small businesses. Much of Dun and Bradstreet's previous work has been with larger corporations, so they plan to delve into the largely untapped small business market, and make D&B credit evaluations the standard for creditors in small business.

References

• Dun & Bradstreet