Is D&B a credit bureau?
Dun & Bradstreet (D&B)
Dun & Bradstreet is one of the three major business credit bureaus (along with Experian and Equifax). Because of this, it's a good idea to open and responsibly use business credit cards that report to it. Let's look at how to build a credit profile with Dun & Bradstreet.
A Dun and Bradstreet credit rating is a score that indicates the financial stability and creditworthiness of your business. Dun and Bradstreet — better known as D&B — is a credit reporting bureau focused on the commercial sector.
A D&B Report, also known as Dun & Bradstreet Business Credit Report, is a business credit report issued by the business credit reporting agency Dun & Bradstreet. The Dun & Bradstreet Business Credit Report measures the creditworthiness of a company.
Dun & Bradstreet (D&B) is a company providing business intelligence and analytics through proprietary software and a global network. D&B's proprietary data and analytics products target small business needs, sales and marketing goals, and credit and third party risk assessment concerns.
A business's PAYDEX Score is roughly equivalent to an individual's FICO credit rating, and many suppliers, banks, and customers will look at a company's PAYDEX Score and business credit report from Dun & Bradstreet before engaging that company's services.
Dun & Bradstreet uses a PAYDEX® score, which measures a business's payment history on a 1-to-100 scale. A score of 1–49 indicates a high risk of late payment, 50–79 indicates moderate risk, and 80–100 represents low risk.
The D&B Rating provides a quick and clear indication of the credit-worthiness of an organisation, which helps you to identify profitable opportunities for growth and risks that could affect bad debt and cashflow.
Making on-time payments on your debts will improve your D&B rating, while late or missed payments could drag it down. Read: Best Bad Credit Loans for Small Businesses.
Who uses D&B?
Dun & Bradstreet's data is reliable for international businesses. The D-U-N-S Number not only identifies millions of companies worldwide but is also recognized and recommended by over 240 government and industry organizations worldwide. The United Nations also uses the D-U-N-S Number as its Consignee Party Identifier.
| Report Type | Cost |
|---|---|
| CreditBuilderâ„¢ Premium | $199 per month |
| Business Information Reportâ„¢ Snapshot | $139.99 per year |
| Business Information Reportâ„¢ On Demand | $189.99 per year |
| D&B Credit Reporter | $799 per year |
No business is legally required to have a DUNS number. But it's used by other businesses and potential creditors to assess your company's financial health — which means having one is still necessary for most businesses.
Visit the chosen credit bureau's website and sign up for an account. You may need to provide some basic business information, such as your company's name, address, and EIN. Each credit bureau offers different plans and report options.
Dun & Bradstreet.
Their credit scoring system, the Dun & Bradstreet PAYDEX, ranges from one to 100, with a higher score being more favorable. Typically, a good Dun & Bradstreet PAYDEX score is above 80.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Can I apply for a business loan with my DUNS number only? While having a DUNS number can be helpful for your business, it typically can't be used as the sole requirement to apply for a business loan. Business loan applications are comprehensive and involve various factors that lenders consider before approving a loan.
Since the DUNS number isn't a government-issued identification number, you can't use it to apply for business credit cards. For that, you'll need to use an EIN, SSN, Individual Taxpayer Identification Number, or other taxpayer ID. But it still helps you build business credit in other ways.
By improving performance through data, Dun & Bradstreet helps businesses reduce credit risk, find new customers, and qualify for financing.
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How do I get my 80 PAYDEX score?
On-time payments for supplier credit will only achieve a max PAYDEX score of 80. To get a score higher than 80, pay trade credit off early. Look for Vendors That Report to Dun & Bradstreet: Paying off trade credit only helps your PAYDEX score if the vendor reports to Dun & Bradstreet.
Business credit is often linked closely with your personal credit. Your track record with business borrowing and repayment can therefore affect your personal credit history significantly, especially if you run into issues paying off business debt.
No, every business doesn't need a DUNS number. That said, it can help you build good business credit and is necessary if you want to apply for certain types of funding. It's also required for a credit report from Dun & Bradstreet.
Business Credit Risk Score
Lenders and creditors also use it to determine the terms of the credit they extend. Businesses are ranked on a scale between 101 to 992, with a lower score correlating to a higher risk of delinquency. A good Business Credit Risk Score is around 700 or higher.
How can I improve my business's PAYDEX score? To bring your business's PAYDEX score up, you will need to pay off debts on time or early. Because it is a dollar-weighted average, the bigger the invoice and the earlier the repayment, the better.
