A Company Credit Report (CCR) is a document that includes all the information about your business’ credit behaviour in the past. Your CCR contains information such as the loans taken by your firm in the past, its current credit obligations, its 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 analysess the document to assess your business’ creditworthiness and then decide whether to grant any additional credit to your business.
As an individual, you get a CIBIL score ranging between 300-900 based on your personal credit history and loan repayment behaviour. However, a slightly different rating scale is applied to your business by the credit bureaus. After assessing the financial health of your venture, the credit bureau assigns your business a score or a rank between 1 to 10. Here, 1 is the best rank and is associated with ‘little to no default risk’, while 10 is the worst rank and denotes a high risk of default. This scale is known as your CIBIL rank.
Note that a CIBIL rank will only be assigned to you if your outstanding credit dues are anywhere between ₹10 Lakhs to ₹50 Crores. The two primary variables that determine your CIBIL rank are your credit repayment behaviour and credit utilisation ratio. If your business does not have a CIBIL rank, it is not necessarily a bad thing as it could mean that your business has very little debt in comparison.
The steps that you need to follow to get your CIBIL company credit report are as follows:
Visit the official CIBIL website
Fill out the application with the following details:
Additionally, you will also be required to share some information concerning the company.
Complete the payment of ₹3,000. Once this is done, a registration ID as well as a transaction ID will be shared with you through email within minutes.
Upload your KYC documents as per the list and options you see on the next page.
Once you complete step 4, your CIBIL rank and company credit report will be delivered to you at the earliest. Note that it may take up to 15 days to receive your company credit report.
Alternatively, if you want to pay for your CCR through a demand draft (DD), you can do that too. All you must do is download the application form at www.cibil.com, fill it up with the relevant data, and then mail it to the following address:
TransUnion CIBIL Limited,
19th Floor, Tower 2A and 2B, One World Centre,
841, Jupiter Textile Mill Compound, Senapati Bapat Marg,
Lower Parel, Mumbai
Maharashtra 400 013
Your CCR typically consists of the following information:
Profile: Details about your company, including name, address, contact information, and the unique DUNS number assigned by CIBIL.
Identification: Information specific to your report, such as how it was generated, the time of generation, and the generating person, along with a unique report number.
Types of Credit: Insights into active credit accounts (like loans and overdraft facilities), outstanding amounts, and the total available credit. Lenders use this to assess your business's credit utilisation ratio.
Report Summary: A concise overview of your credit profile, including the number of loans, outstanding debt, and details about your venture acting as a guarantor for others.
Being 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.
Access Credit: Monitoring your creditworthiness ensures you understand your standing with financial institutions, enhancing your chances of obtaining credit when needed.
Improve Promptly: Identifying areas for improvement in advance allows you to address issues promptly, ensuring a healthy credit profile and better loan prospects.
Prevent Mistakes: Periodic checks help catch and rectify any irregularities or mistakes in your Company Credit Report (CCR), preventing potential obstacles to securing loans in the future.
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.
Some of the factors that impact the credit rating of your firm are:
Credit History Length: A long credit history boosts your chances of having a good credit rating. A long credit history shows timely payments and responsible credit behaviour, providing your enterprise with a favourable risk profile so that lenders happily give you credit.
Credit Utilisation Ratio: This is the percentage of the credit available to your firm that has been used up. Finance experts say that a credit utilisation ratio of less than or equal to 40% is healthy. A credit utilisation ratio above that might still get you a loan, but of a smaller principal amount, a short loan repayment tenure, or a higher interest rate.
Repayment History: If your company has been repaying its credit card bills and loans on time, it will be very easy for your business to secure more credit. Conversely, if your CCR has records of late/delayed payments or defaults, the lender might and reject your credit application.
Outstanding Debts: Another major factor that affects your credit rating is the total amount you are yet to repay. A low outstanding balance can work in your favour when your business applies for new credit and vice versa.
Age and Size of Your Company: If you have been running a business for several years and have been honouring your credit obligations, your business will be instantly viewed as a creditworthy entity. But, startups lack an extensive credit history that can depict its credit behaviour.
Industry: The overall outlook of the industry that your business is a part of is considered while ascertaining the loan repayment capability of your firm, along with variables such as competition, seasonality, strengths, weaknesses, opportunities, threats, etc.
You can improve your company credit report 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 frauds. If you find anything suspicious, report them to CIBIL or the concerned lender immediately
Yes, TransUnion CIBIL generates CIBIL Ranks and Company Credit Reports (CCRs) for commercial entities, including public and private limited companies, partnership firms, and sole proprietorships.
You can check your company’s credit report by downloading it from the official website of TransUnion CIBIL. Fill out the detailed form provided, make the payment of ₹3,000, and share the required KYC documents.
Prioritise repaying existing loans before applying for new ones. Responsible debt management can positively influence your company's credit score.
A CIBIL Rank closer to 1 improves your chances of loan approval. Generally, a CIBIL Rank between 1 and 4 is deemed good, with repayment behaviour and credit utilisation acting as critical factors.
CIBIL Rank is available for companies with credit exposure ranging from ₹10 Lakhs to ₹50 Crores. If unavailable, you can assess your company's credit performance using the CIBIL Company Credit Report (CCR).