Small companies have a great need for reliability and credibility in an environment of increased competition, both from competitors and larger companies. Beyond the competitive environment from which the small business operates, Indian small companies must also develop trust and confidence with prospective customers, vendors, investors, and international trade partners before doing business with them.
A D-U-N-S® Number provides a means for a small business in India to establish a level of trust and credibility with the various parties it may want to engage with. As a result, obtaining a D-U-N-S® Number is now considered a critical factor for small Indian companies to enjoy sustainable business development.
What Is a D-U-N-S® Number and Why Does It Matter?
A D-U-N-S® Number (or Data Universal Numbers System) uniquely identifies each company with a nine-digit code issued by Dun & Bradstreet (or D&B). It is similar to an Aadhaar number, but identifies a business in a global manner.
Dun & Bradstreet uses its extensive business database to support government agencies, financial institutions, large multinational corporations, and bidding programs, to which it provides verified business information. When a company provides a D-U-N-S® Number, it implies that the company has developed a level of credibility with Dun & Bradstreet and other users of its business database.
Builds Global Business Trust
Small businesses have difficulty developing confidence in large corporations and clients throughout the world. The D-U-N-S® Number provides a solution to this problem by providing them with a global identity or brand which all businesses can use.
Many of the largest multinational corporations utilise the Dun & Bradstreet Database as a source for evidence to confirm that suppliers exist. By having a D-U-N-S® Number, an Indian company can:
- Receive worldwide acceptance as a verified company
- Create a level of confidence with worldwide purchasers
- Cut down the amount of time it takes to onboard a vendor
Having a D-U-N-S® Number establishes credible business practices for many small businesses in most industries, including, but not limited to
Enhances Lending and Financial Credibility
Lenders are very careful when determining whether or not to extend loan or credit facilities to a company. The D-U-N-S® Number adds a layer of information for lenders to use when evaluating a company for financing. Lenders (e.g., banks and Non-Bank Financial Companies (NBFC)) will be able to confirm that the company is properly registered using Dun & Bradstreet’s data to:
- Verify business registration details
- Review payment behaviour and financial discipline
- Assess operational stability and risk
The D-U-N-S® Number provides a visibility to lenders, allowing them to make quicker decisions and provides small businesses with a competitive advantage when they apply for loans or financing.
Required for Many Government Registrations and Tenders
The D-U-N-S® Number is a requirement of many national and international governmental agencies, as part of a vendor registration and compliance check. Examples include the following:
- Government e-Marketplace (GeM)
- MSME assistance and incentive programs
- International trade tenders
- Procurement systems from UN and other global bodies.
A D-U-N-S® number benefits small businesses whose goal is to sell to government entities or compete for government tenders. It helps these businesses by improving their compliance with required regulations and by helping establish themselves as credible suppliers.
Helps Build a Strong Business Credit Profile
The D-U-N-S® Number provides an avenue through which Dun & Bradstreet (D&B) can assist in monitoring the financial activity of a business over time. As a business engages in transactions, D&B collects data on these types of activities:
- Timely payments
- The total amount of credit used (utilisation)
- Trade references
- Supplier relationships
he D-U-N-S® Number is also an important part of a supplier’s credit profile. This profile allows a business to easily obtain trade credit, secure better credit terms from suppliers, and gain investor confidence. Companies without credit profiles tend to face greater difficulty in obtaining trade credit and will generally have more difficulty demonstrating financial solvency or creditworthiness.
Boosts Export and International Trade Opportunities
Exporters must provide exporters with proof of legitimacy by using standardized identifiers. Most importers, distributors, logistics service providers, and international banks require D-U-N-S® verification to validate an exporter’s identity.
The D-U-N-S® Number is a way to convey to potential international buyers and others in different markets that there is less risk associated with an Indian SME and more confidence when dealing with Indian SMEs when exporting to these markets: U.S., Europe, Middle East and Africa. Trust will allow Indian SME’s expand their export operations.
Builds Transparency and Authenticity for Online Presence
In a digital-first environment, buyers tend to research a company before interacting with them. With the D-U-N-S® Number, it provides potential buyers with the confidence of knowing there is a globally recognized profile to support the online credibility of a company.
When a company displays their D-U-N-S® Number on their website or proposal or as part of the corporate documentation they are showing:
- Trustworthy information
- Verified business identity
- Professionalism
This improves brand reputation and customer confidence.
Helps Attract Investors and Business Partners
In order to use their resources to invest in a company, investors and strategic business partners must conduct their due diligence on companies. The D-U-N-S® Number streamlines this due diligence process for investors and business partners by providing:
- Verified business identity
- Consistent and accurate data about a company
- Risk and compliance metrics
For Indian startups and MSMEs looking for funding or partnerships, the D-U-N-S® Number helps add trust to the overall evaluation process.
Strengthens Supplier and Distributor Relationships
D-U-N-S Numbers can strengthen supplier and distributor relationships. Suppliers and distributors often require the business to provide them with a copy of their D-U-N-S number for identity verification purposes prior to providing credit or establishing long-term relationships. A D-U-N-S number is the easiest way for a supplier or distributor to demonstrate legitimacy and operational capability.
Businesses with strong D&B profiles may benefit from:
- Getting credit approved and received faster
- Receiving better terms on trade
- Forming long-term relationships with suppliers
Supports Compliance and Corporate Governance
Through good governance and compliance, companies can develop sustainable means of expanding the company. Some examples of how a D-U-N-S® Number achieves this include
- Providing accurate and structured business records
- Providing clear ownership and address information
- Simplifying the process of risk monitoring and supplier due diligence
Assisting small businesses with their audits and regulatory reviews by avoiding complications and errors.
Offers a Competitive Advantage in Crowded Markets
Having a D-U-N-S® Number goes beyond simply being compliant; it also provides small business owners with credibility, especially when there are so many competitors active in a market. Corporations and international buyers place a strong emphasis on professionalism, transparency, and seriousness, all of which can be conveyed by having a D-U-N-S® Number.
Corporate clients and international buyers have the confidence to do business with an establishment that possesses a verified D-U-N-S® Number because it demonstrates that the company operates within global standards and sets it apart from unverified competitors.
How DunsIndia Helps Indian Small Businesses Get a D-U-N-S® Number
Many Indian businesses struggle to complete the application process for D-U-N-S® Number registration due to errors made while preparing documentation and/or mismatched information. The Duns India provides professional services dedicated to assisting Indian businesses in obtaining D-U-N-S® Numbers.
Duns India supports businesses by:
- Duns India handles all aspects of D-U-N-S® Number registration from start to finish
- Duns India will ensure that the business’s information is submitted in an accurate manner
- Duns India will reduce the time required to complete the D-U-N-S® Number application and reduce the chances of rejection
- Duns India charges a flat and transparent fee with expert assistance and advice
Duns India provides small businesses with a verified global identity in a simple and hassle-free manner.
Conclusion
The D-U-N-S® number is a unique identifier for businesses, specifically Indian small businesses. A D-U-N-S® number represents trust between the company and various stakeholders such as lenders, buyers, suppliers, investors, and government. Furthermore, obtaining a D-U-N-S® number allows businesses to enter into the global marketplace.
When obtaining a D-U-N-S® number, businesses can rely on Duns India‘s expertise and experience to ensure that the process is smooth, accurate, and reliable, thus allowing business owners to focus on growing their company without worrying about the credibility of their business.
FAQs
Although you are not legally required to have one, there are many instances where having one is essential for working with multinational companies, using government platforms, and selling to international customers.
While it varies based on many factors, by utilizing DunsIndia’s professional services, you can typically expect a quicker processing time as well as fewer errors with your application.
Yes, startups, MSMEs, proprietorships (individual owners), partnerships, Limited Liability Partnerships (LLP) and private limited companies are all eligible to apply for D-U-N-S® number.
Yes, obtaining a D-U-N-S® number allows Dun & Bradstreet to create your business credit profile, resulting in improved credibility and financeability for your business over time, as well as less reliance on use of personal credit for financing personal and business development activities.
DunsIndia offers expert handling, accurate submissions, faster processing, and transparent pricing—making the registration process smooth and stress-free.