How to Improve Your DUNS Number
A DUNS number is issued to businesses by Dun and Bradstreet, a business credit reporting company. The unique, nine-digit number identifies your business to customers, suppliers and lenders and enables them to find out about you and your company. The number is a major factor in business credit decisions. Your DUNS number will have an attached score from 0 to 100 with above 75 considered an excellent score. Improving your DUNS number takes time and some smart business decisions.
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Instructions
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Get a dedicated company address and phone number that are separate from your home address and telephone number. Even if you work from home, consider renting a virtual office or paying a telephone answering service to take your calls. Most credit grantors will require that you have a local phone number and address before extending credit to you.
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Make a professional business plan and keep good financial statements. Most credit grantors require both items to extend credit to your business.
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Comply with credit market requirements for businesses. Click on the IBank link listed in References and ensure that your business meets all of the necessary requirements for credit. For example, if your businesses need licenses or insurance, make sure that you have the licenses and keep good records.
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Apply for credit with companies who report to Dun and Bradstreet. Reporting to Dun and Bradstreet is voluntary, not mandatory, so making sure your credit grantor reports to Duns and Bradstreet. This will keep you from opening unnecessary accounts that won't improve your DUNS number. Try opening small trade accounts with chain stores or mailing services.
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Pay your bills on time, or before they are due. Timely payments will ensure that your DUNS number improves over time.
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Keep the number of credit accounts you are responsible for down to a minimum. Business credit works much like personal credit: an excessive number of open accounts with high balances will adversely impact your DUNS score.
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Tips & Warnings
Ideally, you should have formed a corporation or Limited Liability Company before you applied for a DUNS number. This ensures that your business credit is separated from your personal credit. Your personal credit score can easily get mixed up with your business credit if you don't form a corporation or LLC, possibly leading to a lower DUNS number. In addition, a corporation or LLC offers you liability protection. If you didn't incorporate or form an LLC before getting your number, you still may want to consider it as a way to improve your DUNS number in the long run.
References
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