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General FAQ's

What is D&B? What do you do?

D&B is the world's leading provider of business information, enabling business-to-business commerce for over 167 years. We gather our information through management interviews, public information, courthouse records, charter searches, the Internet, suppliers, and other sources. We have the largest company database available, with information on 120 million companies worldwide for your credit, marketing and purchasing decisions.

Our information and technology solutions help your business reduce credit risk, find profitable customers and manage vendors efficiently. Businesses rely on D&B for insight and consider us a trusted partner to make confident business decisions. .

How can I be certain the data D&B collects is up to date?
All data collected by D&B must first pass rigorous quality checks. Aside from our over 2,000 information validations on our customized data entry system, we randomly call companies and review the information we've compiled on their businesses. If you should question the information received about a company, a group of dedicated consultants are available to reinvestigate the information at no charge. Simply call our Customer Information Centre at 1.800.463.6362 to initiate a reinvestigation.
What is a D-U-N-S® Number? Why would a company want my D-U-N-S Number?

D-U-N-S stands for Data Universal Numbering System, which is recognized by companies worldwide. The D-U-N-S Number is a unique number that is assigned to businesses, similar to the social insurance numbers we all have. The D-U-N-S Number has become the standard for keeping track of the world's businesses.

Using our D-U-N-S Number, you can:

  • Eliminate duplicate file entries in your customer file to increase accuracy
  • Group invoices, requisitions, payments, shipping, customs clearance and other business documentation
  • Reduce operating costs by linking inter-related suppliers and increasing purchasing power
What is the difference between control year and start year?

Start year is the year that the company commenced operations. Control year is the year under which the current ownership of the company took effect.

Where does D&B get company information?

We have experienced data collectors who conduct interviews with principals or senior management of businesses. This is supplemented by public record information (court house documents, financing statements, payment experiences, corporate charters, etc.).

Our business analysts will also search the Internet for financial information on public companies, corporate searches and other media-related items.

Where does D&B obtain trade and payment info?
The majority of our trade information is obtained from thousands of companies who supply us electronically with their receivables (ATB — Aged Trial Balance) on a monthly or quarterly basis. Trade data is also obtained via telephone. In some instances the suppliers may decline to provide details. Trade is also obtained through the company itself when we phone the credit references on a subscriber's inquiry.
When is an entity a private or public company? What’s the difference?

During the management review of a company, D&B attempts to determine if companies are publicly traded. When this information is not immediately available, we can confirm if a Canadian company is traded publicly by looking them up on SEDAR. If it’s listed on SEDAR, it should be a public company.

  • A public company has issued shares, which are sold and traded, usually on a stock market such as the TSX or the NYSE. These shares or other financial instruments represent a part of the company, which is sold to the public in order to raise working capital.
  • A private company is not publicly traded and is owned by one or more people. Frequently, these investors are the owners/operators or they are people who enter into private agreements with the company owners. In other words, only selected people can invest in the company.
What is a holding company? What is a parent company?

There are several different answers that describe a holding company.

Answer 1:  A holding company is one that controls other companies through stock ownership but that usually does not engage directly in their productive operations. This is distinguished from a parent company.

Answer 2:  A holding company can be described as a company whose primary business function is holding an interest in the securities (shares) of other companies. It may or may not participate in other business activities.

Answer 3:  A holding company is separate company that owns and controls other companies but that usually does not engage directly in daily operations. Holding companies are frequently set up for tax reasons. As such, many of them have no actual employees except for directors and high-level management.

A parent company can be described as a company which owns 51% or more of the voting shares of another company, regardless of its business function.

A parent company is typically an actual working company that may or may not generate products or services. A parent/subsidiary relationship indicates that the parent owns 51% or more of the subsidiary company.

How does D&B verify information in a report?

We use a variety of sources to build and maintain our database, including government registries, court houses and other legal filings offices, the news, the Internet, media, and interviews with business principals, its customers and other interested third parties.

Here are some of the ways we ensure quality information:

  • We make extensive use of technology to collect and verify our data.
  • Information feeding our database is collected directly by us or in collaboration with expert business partners.
  • Collection over the Internet captures an array of essential information, often directly from company websites.
  • We have systems in place for checking the accuracy and completeness of our information. For example, random checks on address and telephone numbers to measure deliverability and connectivity.
  • Quality checks are also done on a percentage of each business analyst’s work. A verifier will call a random sample of companies and confirm the accuracy of the report. We also have live quality monitoring performed on a consistent basis for all of our associates. Our accuracy rate is over 99%.
  • Our customized data entry system alone contains over 2,000 ways to validate information.
  • We talk to business owners and management to ensure that the information we’re gathering is accurate.
  • We have programs set which load trade and public record information into the database, so that each report contains as much information as possible.
Why doesn't D&B have more financial statements in its reports?

The only companies that are required to provide financial statements are public and non-profit companies. The majority of businesses in our database are privately held. The business analyst’s job is to demonstrate the benefit of providing information to D&B. In fact, we are the only company that successfully provides financial statements on privately held businesses.
Public companies in our database have current financial statements reported. Our data collectors are required to ask all private organizations for their financial figures when conducting interviews.

If a company is listed with D&B, does this mean it’s a legitimate company?
We gather information from the business itself, third parties and public records, and publish it along with an analysis when appropriate. We keep track of how companies pay their bills, if they are getting sued, and other demographic details on the company's operations. Our Business Information Report also contains incorporation details from the federal or provincial governments, and business names are verified against business registries. We don't comment on whether a company is legitimate or not, but rather let the information speak for itself.
Does D&B reveal the name of the subscriber or company inquiring?
Our policy is not to reveal the name of the subscriber or company without permission to do so. A confidentiality agreement is included in your contract with D&B. We only release the name of inquirers if you give us authorization. By law, we are not required to provide this information. The only exception to this policy is Bill 21, introduced in British Columbia on March 1, 1995, which amended the Credit Reporting Act to extend application of a certain section of the Act to business transactions. In other words, if the company being inquired about is located in the province of British Columbia and they ask who is inquiring, by law we must release the name of the subscriber or company.
What do some of the different terms describing a company’s status mean?
  • Dormant — A business entity is deemed dormant when there is no activity. The corporate registration may be retained. We will only declare a subject dormant if this is reported by an officer of the company itself, a parent or related companies.
  • Bankrupt — A business entity is bankrupt if based on public record from the Office of the Superintendent of Bankruptcy Canada. Note: A bankrupt company may still operate for winding-up purposes (managed by a Trustee). Or, assets may be sold, or it may cease to operate completely.
  • Dissolved — A business entity may voluntary or involuntary dissolve its existence. Either way, the company ceases to operate.
  • Assets liquidated — A business entity under dissolution may liquidate its assets to pay off its liability. Under these circumstances, the company may still operate for winding-up purposes.
  • Operations ceased — A business entity ceases to operate when it actually stops doing its business. This must be confirmed by an officer of the company, a parent or a related company.
  • Receivership — A business entity is deemed in receivership if based on public record from the Office of the Superintendent of Bankruptcy Canada. Note: A company under receivership may still operate under the receiver manager.
  • Receiving orders — An order handed down by the court following the successful petition to have a person or a company placed into bankruptcy. In an amendment dated December 15, 2004, this term was changed to Bankruptcy Order.
  • Division of a U.S. firm — A business entity operating in Canada where the head office is in the United States. This is considered a foreign branch (rating — FB).
  • Unable to locate — A business entity is deemed unable to locate when reasonable resources has been checked and the business is nowhere to be found.
  • Stop distribution — This is when information is currently unavailable while the company’s file is under special investigation. A Business Information Report will be on stop distribution on the following grounds:
  1. Questionable business practices
  2. Broken linkage
  3. Too many public records
  4. Rating is higher than the parent company’s
  5. Net worth is higher than the parent company’s
What’s the difference between mergers, acquisitions and consolidation?
Merger — A merger occurs when companies combine assets and exchange securities. One company continues in existence and takes over the assets of the other company, which is dissolved. The company that continues in existence may also be referred to as the surviving entity or survivor.

Acquisition — An acquisition occurs when one company acquires or buys the assets of another company. The acquired company remains in existence as a subsidiary of the acquiring company.

Consolidation — A consolidation occurs when both firms dissolve and a new, successor corporation (or entity) is formed to take over the assets of both of the original companies.
How are franchises linked in D&B’s database? How does this differ from branches and subsidiaries? How are related concerns (such as minority interest) handled from a linkage perspective?

D&B’s Family Tree Plus provides the following:

Agents — Links independently owned and operated agents, such as insurance and real estate agents, to companies with which they are affiliated (e.g. Allstate Insurance, Coldwell Banker Real Estate).

Franchises — Links independently owned and operated franchise locations to their franchisors (e.g. Burger King, McDonalds, Jiffy Lube).

Vehicle dealerships — Links individually owned and operated dealerships, such as auto or motorcycle dealers, with the manufacturers they represent (e.g. General Motors, Ford, Nissan).

Minority interest (related concerns) — Links companies that are affiliated through ownership of less than 50% of capital stock.

Non-profit chapters — Links non-profit organizations to each other, such as charities, professional membership organizations, unions and volunteer organizations. For example, the Rotary Club of Canada is linked to Rotary Club International.

Health care provider network — Links health care companies (such as hospitals) that form networks to share purchasing power, equipment, and professional and human resources.