TransUnion CIBIL maintains the CCR based on the information shared by lenders, and with the CIBIL score for business loans it computes. Read on to learn more about the factors influencing your CCR and what you can do to ensure your CIBIL score remains high.
A long credit history enables a higher CIBIL score, especially if you are able to show a history of timely repayment.
Credit utilisation ratio depicts the amount of credit a company requires and utilises. The higher the credit utilisation ratio, the less creditworthy a company is considered. This is similar to the credit utilisation ratio judged for individuals.
Over the course of their operations, companies often avail loans and are required to pay EMIs. When lenders assess the CIBIL Score for business loans, they pay special attention to this part as it allows them to assess how reliable the company’s repayment will be. That is why it is necessary to always repay your loans on time.
It is possible that businesses may already have existing loans while applying for a new one with a different lender. However, the CIBIL score check includes an analysis of the different loans that are outstanding for a business and its capacity to repay them. It is always best to take as few loans as possible in order to ensure that your creditworthiness remains intact.
How long a company has been operational and its size are huge factors for consideration while computing the CCR and during a CIBIL score check. Companies that have been operational longer usually have higher CIBIL scores since their history is more as compared to newer firms.
The CIBIL score for business loans is an important tool that lenders use while deciding to approve your business loan, which is why it is important to ensure it remains high. With a high CIBIL score, you can easily avail the best loans such as Bajaj Finserv Business Loan, available on Finserv MARKETS. You can get approval within 3 minutes for a range of requirements including your working capital needs. You can repay loans of up to Rs. 30 Lakhs within a flexible repayment tenure of 12 to 60 months.
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