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CIBIL Commercial Report

Very often, we come across a CIBIL credit score for individuals, but if you are running a business or firm, the tables of CIBIL are all-round different. For individuals, CIBIL generates a credit score along with a credit information report (CIR). For commercial borrowers such as corporations and firms, CIBIL generates a company credit report or a CCR.

What is a CIBIL Commercial Report?

Just as a CIBIL score denotes the creditworthiness of an individual, a CIBIL commercial report highlights the creditworthiness of a business. Thus, a CIBIL commercial report is a comprehensive statement which represents the financial health of an organisation with respect to the information received from the banks and financial institutions. This detailed report is further extensively utilised in determining the creditworthiness of a company when they require a commercial loan.

A CIBIL commercial report comprises of the following information:

Company background - Includes the company’s background information such as a legal constitution, subsidiaries, ownership and years of operation.
Financial information - Financial details which determine the credit levels the company can borrow.
Financial history - Financial details specific to the company’s financial history including the repayments, collections, revenue generation, and more. Apart from these another important factor is the CIBIL rank. A CIBIL rank is similar to a CIBIL score. It summaries the company’s CCR in numerical terms. Just as CIBIL score ranges from 300-900, a CCR ranges between 1 to 10, where 1 is the best possible rank. This rank is only provided to businesses that have credit exposure of ₹10 lakh to ₹10 crore. The closer your company's rank is to 1, the better are its chances of securing a commercial loan.

How to get a Company Commercial Report

You can get your Company Commercial Report from the official website of CIBIL. However, it must be noted that you require a paid subscription fee of ₹3,000 to access your CCR. Mentioned below are the steps.

Step 1 - Go to the official website of CIBIL - cibil.com/online/Company-credit-report.do.
Step 2 - Now, you will be required to fill out the application form with the requested information such as legal constitution and registered address of the company, name and address of the applicant requesting the CCR, contact details of the company and applicant, PAN and other details, enclosed document details and additional information.
Step 3 - Next, select your mode of payment of ₹3,000 via the online options available.
Step 4 -Post payment, CIBIL will assign your application request a unique Registration ID and Transaction ID which will be mailed to your email ID.
Step 5 - Now, upload your KYC documents. Post submission, the CCR and CIBIL rank will be delivered to you within seven days at the company’s registered address.

Factors Affecting Company Commercial Report

Credit history - A CCR is heavily affected by the length of credit history of a company. The longer the credit history, the better it is for your company commercial report.

Credit to debt ratio - A credit to debt ratio represents the credit utilization ratio of a company. A higher credit utilisation means that a company is spending its borrowed funds faster than expected. This can have a negative impact on the CCR.

Previous history - Every company requires operation funds to meet the daily expenses of a business cycle. These funds are availed through loans which have to be paid via EMIs. Individuals as well as companies should pay their EMIs on time as a good indicator of financial health.

External debts - External debts or the amount of debts outstanding can have a negative impact of a company’s CCR as credit institutions take into consideration the outstanding amount. Hence, it is important to maintain and keep only feasible amounts outstanding.

Profile of the company - This includes the size and life of a company. Older and larger corporations have a sound and well established financial history, hence they are sought to be more credible in comparison to new businesses and startups.

Industrial sector - Particular industrial sectors have a higher risk and impact on a company’s CCR. For example, if your company works in the oil and gas industry which is considered of having a high volatility due to international market conditions, the company will be considered less creditworthy in comparison to companies from much stable sectors such as banking and insurance.

How to Improve your Company Commercial Report

The best way to improve your CCR is to pay back your outstanding and existing EMIs on time. Whether it is a personal loan or a loan taken in the name of the company, ensure that you pay the entire outstanding amount on the due date.

If you are using your company’s credit card or corporate card, ensure that you pay the EMIs on time, as an outstanding debt can have negative impacts on your CCR and your CIBIL Rank could come down.

Keep yourself updated with the company’s latest transactions and credit statements because many times banks and credit institutions tend to make a mistake. If such an error arises, it is better to get it rectified immediately.

Always keep an eye on the amount of money coming inside/going outside the company. This is a good way to check your credit limit and will help you understand the amount of credit you can borrow from a bank.

Another alternative is to avail a long term loan and paying it on time. This creates a good image of the company in front of the bank.

FAQs on CIBIL Commercial Report

How is a CIBIL rank different from a CIBIL score?

The primary difference between the two is that a CIBIL rank is assigned to a business while a CIBIL score is assigned to an individual. The former ranges between 1 to 10 where 1 is considered as the best rank for availing a commercial loan. The latter ranges between 300-900 where any number closer to 900 is considered as a good credit score.

What is a Company Commercial Report?

A company commercial report or a company credit report (CCR) is a document which denotes the creditworthiness of a company as a whole. It is issued by CIBIL and other credit rating agencies in order to determine the payback potential of various corporations across India.

Which number is used to track a company’s credit history?

A DUNS number is a unique number by which you can track the credit history of your company.

What is a ‘Write Off?

As per the bank’s rules and regulations, a write off means that a particular loan was never recovered. This means that the bank has been unable to track the borrower or the borrower has failed to pay the amount.

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