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Company Credit Report

Loans and credits are lifelines for thousands of businesses and enterprises in the Indian economic ecosystems. Just like individuals, business entities and proprietorships need to prove good financial health to make feasible the much-required credit line from banks and non-banking financial institutions. Company Credit Report is the proof of the creditworthiness of an enterprise just like the CIBIL score shows the creditworthiness of an individual.

How to get your CIBIL company credit report?

You need to fill out the request form by visiting the CIBIL website and pay Rs.3000 to get the CCR for your enterprise. Website- www.cibil.com/online/Company-credit-report.do

  • Fill out the detailed request form. It needs information such as:
    • Legal Constitution
    • Registered address of the company.
    • Name - address of the applicant requesting the CCR.
    • Contact details of the company and applicant.
    • PAN and details.
    • Additional information.
  • Make payment.

  • You will get unique Registration ID and Transaction ID which will be mailed to your email ID.

  • Upload KYC documents.

After this, your CCR and CIBIL Rank will be delivered to you at the earliest.

Disputes related to CCR

You are entitled to raising a dispute request on your enterprise CCR. The following disputes could be raised:

  • A dispute can be raised on details related to company name, address, company phone, asset classification etc.
  • Ownership Disputes can be raised.
  • If the same account is reflected more than once in CCR, you can initiate a dispute request. Company name, city, state and PIN Code etc.

What is CIBIL Company Credit Report?

The CIBIL company credit report is an expansive document that represents the financial health of an enterprise. This report is collated from information gathered from a variety of banking institutes. Lenders use this report to calculate the creditworthiness of enterprise.

Importance of Company Credit Report

In today’s competitive age, any market enterprise would require the guarantee of funds and resources to survive the various ups, downs and inertia problems. It could be bidding for a tender or a business contract’s initial payment, in any situation an enterprise requires credit. For this, the company requires to show its credit worthiness to the concerned lender. The Company Credit Report holds the important distinction of doing so. Kindly note, that as the owner of the enterprise, your personal credit score does not positively or negatively affect your Company credit report.

What does CCR consists of?

A typical CCR will consist of the following:

  • Profile:This is amongst the most critical parts of a CCR as it contains all the figures pertaining to the enterprise. Information such as
    • Company’s name, address and contact details.
    • Unique number called the DUNS number
  • Identification:These are details of the current report and shows details such as:
    • How it was generated.
    • When it was generated.
    • By whom it was generated.
    • A unique number is generated every time your report is asked for.
  • Credit Type and Enquiry:In this section, we deal expansively with the credit extended to an enterprise. It is furthered into:
    • Types of credit, overdraft, loans, etc.
    • The amount of each credit is stated. Also, the total credit is mentioned in the end.
  • Report Summary:The report summary in a CCR mentions the credit history of your institute. It lists:
    • Number of loans that the company has taken.
    • Balance of the loan amount extended to the company and the number of sources that have extended that loan.
    • Whether the company has acted as a guarantor for a loan, then that too is mentioned in this section.

How to improve company credit reports

Like all credit reports, a CCR can be unhealthy due to various reasons:

  • In case you been issued a loan in the name of your enterprise, you need to pay it back in time.
  • If your enterprise has been issued credit cards or any instruments, then ensure timely repayments.
  • You also need to make sure that there are no transactional errors in your report. Even if it is a mistake made between your banking institute and the credit bureau.

Factors influencing CIBIL company credit report

Resulting from a thorough investigation of your company information and history, your CCR is influenced by the following:

1- Credit History Length – Much like the credit report of an individual, the CCR is positive towards a long credit history.

2- Credit Utilization Ratio – High utilization means more credit hunger on part of your enterprise. Hence, lower credit worthiness.

3- Repayment – Nothing like timeliness in the repayment of the loaned amount.

4- Size and Age of Enterprise – An enterprise which is old with consistent growth is more likely to find favour with the credit bureaus.

5- Industry – The ecosystem of your industry also decides the creditworthiness of your credit demand. Especially, if your operation belongs to an industry which has many ups and downs.

What is CIBIL rank and how is it related to CIBIL CCR?

  • Companies are given CIBIL rank ranging from 1 to 10.
  • A CIBIL rank between 4 and 1 is deemed good by most of the financial bodies.
  • Repayment pattern and credit utilization are the primary parameters used to decide a company’s CIBIL Rank.
  • CIBIL Rank is assigned only to those with outstanding loans of Rs. 10 Lakhs - Rs. 10 Crores.
  • Not having aCIBIL Rankis not a negative factor.

FAQs on Company Credit Report

How are individual CIBIL reports different from company credit reports?

The credit report of an enterprise is not about an individual owning or working for the enterprise. Rather, it is the creditworthiness estimation of the enterprise.

What does DUNS number specify?

DUNS is a unique number given to each company that helps track its credit history.

What is the minimum CCR required by a company to get a loan?

A minimum CCR score of 4 is required for a loan.

Who can get access to Company Credit Reports?

  • CIBIL Members, such as leading banks and financial institutions, can get information from CIBIL.
  • Members can access only if they need to take an important credit decision.
  • Members of the CIBIL can access the CCR alone.

What is the key difference between CIBIL rank and CIBIL score?

CIBIL rank is applicable only on companies and it summarises the CCR in the form of a single digit that ranges between 1 and 10. It is assigned only to those enterprises that have taken a loan ranging between Rs. 10 lakh and Rs.10 Crore. On the other hand, the CIBIL score is applicable to individual consumers and ranges between 300 and 900.

What to do if I want to correct any errors on my CCR?

You are entitled to raising a dispute request on enterprise CCR.

Do I have to pay for getting a CCR?

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