Company Credit Report (CCR)

Just as individuals have a credit score to represent their financial profile, businesses have their own credit profile as well, which is outlined through the Company Credit Report (CCR). Through the report, you can get CIBIL Rank, which is a numerical indicator of the business’ creditworthiness. It is issued by the TransUnion CIBIL and you can check it on its official website.

 

Lenders check the report and rank to assess your company’s financial standing before offering credit.

A Company Credit Report (CCR) is a document that includes all the information about your business’ credit behaviour in the past. It contains information such as the loans taken by your firm in the past and its current credit obligations. It also includes credit utilisation ratio, and the number of credit inquiries made by financial institutions.

 

CCR is one of the first documents that lenders access when you submit a business loan application. The lender analyses the document to assess your business’ creditworthiness and then decides whether to grant credit to your business.

Lenders, suppliers, and creditors use your CCR report to understand how reliable your company is when it comes to repayments. A good credit report can help you secure loans at lower interest rates and higher credit limits. It also strengthens your company’s position when negotiating with financial institutions, suppliers, and other creditors.

Your Company Credit Report includes several important details that help assess your business's financial health and creditworthiness:

 

Here’s what is included in the report:

• Your company’s CIBIL Rank

• A detailed record of all active and past loans, including lender-wise details, sanctioned amounts, and repayment history

• Essential business details, such as company’s name, registered address, and key contact information

• Summary of your company’s GST returns

• List of all credit applications and lender inquiries related to the business

• A consolidated view of how much of the sanctioned credit limits and working capital loans have been used

CIBIL Rank is a single-number summary of a Company Credit Report, similar to how a CIBIL Score works for individuals. This rank ranges from 10 to 1, with 1 indicating the lowest credit risk and the highest chances of loan approval. It is issued by TransUnion CIBIL and applies exclusively to MSMEs with credit obligations up to ₹50 Crores.

 

A CIBIL Rank is not applicable for the large companies with credit obligations of more than ₹50 Crores. They instead get credit ratings, which are alphabetical grades issued by Credit Rating Agencies(CRAs) like CRISIL, ICRA, etc,.

You can get your Company Credit Report on TransUnion CIBIL credit bureaus’s official website. Here are the steps you need to follow:

1. Visit the TransUnion CIBIL website https://www.cibil.com/

2. Click on ‘Products & Services’ section

3. Select ‘CIBIL Rank and Company Credit Report’ under the ‘BUSINESSES’ tab

4. Select ‘SUBSCRIBE NOW’

5. Choose from three available plans:

   1. Basic: 1-month access with weekly refresh of the rank and report for a month

   2. Standard: 6-month access with weekly refresh of the rank and report for 6 months

   3. Premium: 12-month access with weekly refresh of the rank and report for a year

6. Click on ‘SUBSCRIBE NOW’ (present in each section) button based on your requirement

7. Click on ‘Enter GSTIN and Go Paperless’ option, after entering the company’s GSTIN

8. If you do not have a GSTIN, click on ‘Continue without GSTIN to upload documents’

9. Verify company details (name, address, PAN). Fill in any missing details and proceed.

10. Tick the checkbox and click ON ‘Submit and Continue to Step 2’

11. Choose your preferred mode of payment and complete the transaction

12. After payment, you will receive an email with your transaction ID and registration details

13. Upload KYC documents

 

Once you complete these steps, your CIBIL Rank and Company Credit Report will be delivered to you at the earliest.

Here are things you should keep handy before you start the process to get your CCR:

• Your company’s GSTIN and username

• Enable API access in the ‘Manage API Access’ section under GSTIN login. For this, navigate to Login, then select ‘My Profile’ and click on ‘Manage API Access’

• Provide your entity’s primary GST number or the one on which all borrowings from financiers are undertaken

Here’s why you need to keep a check on your CCR:

• To Stay Prepared

Regular checks provide insights into your enterprise's credit health, allowing you to anticipate and navigate potential financial challenges or seize expansion opportunities effectively.

• To Access Credit

Monitoring your creditworthiness ensures you understand your standing with financial institutions, enhancing your chances of obtaining credit when needed.

• To Improve Your Profile

Identifying areas for improvement in advance allows you to address issues promptly, ensuring a healthy credit profile and better loan prospects.

• To Avoid Mistakes

Periodic checks help catch and rectify any irregularities or mistakes in your Company Credit Report, preventing potential obstacles to securing loans in the future.

• To Boost Security

Given the critical role of money in business survival, staying informed about your enterprise's financial health ensures better preparedness for unforeseen circumstances and enhances your overall financial security.

You can improve your Company Credit Report and CIBIL Rank in the following ways:

• Pay off business loans and corporate credit card bills on time. Additionally, partially or fully prepay the loan amount as and when possible.

• Maintain a low credit utilisation ratio (40% or under)

• Keep the old credit cards issued to your firm handy until expiry

• Improve the profitability of your firm

• Check your CCR frequently and keep an eye out for any inconsistencies, misprints, or potential acts of fraud. If you find anything suspicious, report it to CIBIL or the concerned lender immediately.