CIBIL Commercial Report & CIBIL Rank

CIBIL Commercial Credit Report (CCR) refers to the credit reports generated by TransUnion CIBIL for various commercial entities, such as private and public limited companies, partnership firms and sole proprietorships. In the following sections, key aspects and components of the CIBIL Commercial Report along with the CIBIL Rank and various other factors are discussed:

CIBIL Commercial Report

CIBIL Commercial Report, also known as Company Credit Information Report is a statement of a commercial entity’s credit history that also depicts its creditworthiness and past credit behaviour. Find below a representation of key features of CIBIL Rank, along with difference between CIBIL score and CIBIL rank.

Just as TransUnion CIBIL calculates and generates CIBIL Scores and CIBIL Reports for individuals, same way it also generates CIBIL Ranks and Company Credit Reports (CCRs) for commercial entities, such as public and private limited companies, partnership firms and sole proprietorships. CIBIL Commercial Report serves as a record of the company’s credit history, based on the data submitted by various lending institutions across India on a monthly basis. The main purpose of this report is to help lenders assess the credit behaviour of a prospective commercial borrower. It helps lenders make them informed lending decisions for borrowing entities considering their creditworthiness.

Additional Read: How to check my CIBIL score free?

Difference between CIBIL Score vs CIBIL Rank

Just like individuals, commercial entities also apply for loans to carry out their businesses and when they do, lenders pull their credit history from credit bureaus like TransUnion CIBIL. That’s when the CIBIL commercial report and CIBIL rank helps.

We have drawn a comparison between the CIBIL Score and CIBIL Rank to help you better understand both terms and their differences. Refer to the table below:

Components of Commercial Credit Information Report

Commercial Credit Information Report contains a host of information that is grouped in the following sections and sub sections:

1. Identification: It is present at the top and contains Report Order Number, which indicates the number of times your report has been accessed from CIBIL’s database.

2. Enquiry Information: This section specifies the name of the company, an identification code and address.

3. Borrower’s Profile: It is further divided into 4 sub-sections:

• Borrower’s Details: It includes company name, legal constitution, class of activity, etc.
• Address and Contact Details: It includes the registered office address, phone number, etc.
• Identification Details: It includes the company’s PAN, company registration number, etc.
• Delinquencies Reported on the Borrower: It includes the payment status of the company and the guarantors.

4. CIBIL Rank: This section displays your credit rank, which ranges on a scale of 1 to 10. The lower the rank, the better are the chances of getting a loan.

5. Enquiry Summary: This section displays the list of enquiries done by lenders in the recent past.

6. Derogatory Information: This section contains information regarding defaults, overdue and dishonoured cheques.

7. Outstanding Balance Details: This section provides an overview of the company’s asset classification with respect to the credit facilities availed.

8. Location Details: This section mentions additional contact information of the company.

9. Related Parties Details: It gives information about the related individuals or entities.

10. Credit Facility Details – As Borrower: This section contains details of the credit facilities availed by the company. It contains credit facility details, payment status and overdue details.

11. Credit Facility Details – As Guarantor: This section contains details about the credit facilities guaranteed by the company.

12. Suit Filed Details: It gives details of suits filed (if any) by any of the previous lenders for the company.

13. Credit Rating Summary: It contains the latest three credit rating information assigned to the company by an external accredited rating agency.

14. Enquiry Details (Last 24 Months): This section provides details regarding the enquiries made by lenders for your company’s credit application.

Importance and Usage of CIBIL Commercial Report

Company Credit Report plays a key role in getting approval for business loans, as almost all the lenders assess the report before approving any loan application. The report acts as a reflection of the credit history and tells the potential lender about the financial behaviour of the commercial borrower. This is, therefore, a strong indicator of a commercial borrower’s creditworthiness. A good commercial credit report can increase the chances of getting your loan application approval.

Documents Required to Check CIBIL Commercial Report

1. For Public and Private Limited Companies

• Proof of Address (any 1): Electricity or telephone bill, bank account statement or passbook, registered lease/ sale agreement of office premises, address proof issued by commercial or multinational banks, registration certificate issued under Shops & Establishment Act.
• A copy of board resolution along with authorized signatory list and specimen signature.
• Company PAN.
• Proof of Identity of one of the authorized signatories: PAN/ Passport/ Driving Licence.

2. For Partnership Firms

• Proof of Address (any 1): Electricity or telephone bill, registered lease or sale agreement, bank account statement, etc.
• Copy of partnership deed or certificate of registration.
• List of authorized signatories with specimen signatures.
• PAN of the partnership firm.
• Proof of Identity of Partner requesting for the Company Credit Report: PAN, Driving Licence or Passport.

3. For Sole Proprietorships

• Proof of Address (any 1): Electricity bill, registration certificate issued under Shops & Establishment Act, etc.
• Proof of Identity of the Proprietor: PAN, Passport or Driving License.

Note: All the above mentioned documents needs to be self-attested by the proprietor/applicant.

Factors Affecting CIBIL Commercial Report

Following is the list of the major factors that affect the Company Credit Report (CCR), and hence the CIBIL Rank:

• Payment History: This refers to how a company managed its past loans and dues. It is always a good practice to be punctual with respect to making payments.
• Credit Utilization Ratio: This refers to the ratio of credit used by the company out of the total credit (loans and overdraft) available to the company. A high credit utilization ratio portrays the company as credit hungry, and thus negatively impacts the Company Credit Report.
• Length of Credit History: It refers to the duration over which the company has availed loans and repaid them. A longer credit history generally translates to a good CIBIL rank, provided the payments were made punctually.
• Outstanding Debts: This refers to the sum of ongoing loans and other outstanding debts of the company. A large amount of such debts indicates lower repayment ability, and hence negatively impacts the CCR.
• Age and Size of Company: Older and larger companies generally have better chances of getting a loan approved along with being offered at a lesser rate of interest. This is because such companies are considered more credible owing to longer operations and continuous growth.
• Turnover and Profit of Business: This has a direct bearing on the repayment capacity of the business with respect to available loans. Typically higher profits/turnover make it easier for businesses to get additional loans.

Tips to Improve your Company’s CIBIL Rank

The following are some key actions that can help you improve the CIBIL Rank of your business or enterprises as these get recorded in your CIBIL commercial report:

• Always pay the loan EMIs and other outstanding dues on time to maintain a good repayment history
• Try to maintain a low credit utilization ratio to improve the company’s creditworthiness
• Sustain a long and good credit history to improve your company’s credibility
• Always maintain a feasible amount of outstanding debts, so that the company’s repayment ability is not affected
• Maintain a good balance between the company’s assets and available liabilities

Also Read: 10 Easy Ways to Improve & Increase your CIBIL Score Fast

CCR’s GST report and its Business usage

While applying for a commercial loan, the information related to your Company Credit Report, CIBIL Rank, and GST report is required and checked by the lender or financial institution before any commercial, business or MSME loan approval. As the official GST portal from TransUnion CIBIL holds the authentic GST report, therefore this report acts as the trustworthy data source for banks or NBFCs for loan approval or denial. The GST report contains all the valid and detailed information that lenders need to evaluate a credit application. It also helps in quick calculation of your commercial loan eligibility as defined by the bank.

FAQs

Q. What is CIBIL CCR?

Ans. CIBIL CCR or Company Credit Report is a record of your credit payment history. This information is pulled from various credit institutions. CCR is used by prospective lenders (banks and other financial institutions) to determine your credit behaviour.

Q. What is a ‘Write Off’?

Ans. ”Write Off” in the case of a credit bureau means that the borrower has not made payments on borrowings like loans and credit cards for more than 180 days. Due to this the lender has ”Write Off” the charge or balance. This means you were not able to pay the balance on time and it has been reported by the lender to the credit bureau.

Q. What is CMR in Commercial CIBIL?

Ans. CIBIL MSME Rank (CMR) in commercial CIBIL is a tool that predicts any default of Micro Small and Medium Enterprises and also provides information regarding the credit behaviour of MSMEs.

Q. Who can access Company Credit Report and CIBIL rank?

Ans. Members of CIBIL, including leading banks and financial institutions can access Company Credit Report and CIBIL Rank.

Q. What is Report Order Number in the Company Credit Report?

Ans. Report Order Number refers to a unique number generated every time your Company Credit Report is accessed from CIBIL’s database.

Q. Can I purchase a GST report without paying for the Company Credit Report?

Ans. No, you will not be able to buy it separately as it is a part of your CIBIL’s Company Credit Report subscription plans. You need to select the plan as per your requirements to download your GST report.

Q. Will I be able to get access to my Company Credit Report, if I do not have a GSTIN for my business?

Ans. Yes, you can access your Company Credit Report without GSTIN by simply uploading KYC documents to authenticate your request. After your documents are verified by CIBIL then you shall be able to view your CCR and CIBIL rank.

Q. How can I get a GST report for my company or business?

Ans. The GST report comes along with your Company Credit Report (CCR) and CIBIL rank, so it is not chargeable. To view or download your GST report on the dashboard, all you need is your business GSTIN and GSTPIN authentication. It is basically one of the components of your Company Credit Report and CIBIL Rank.

Q. What does it mean, if my CIBIL Rank is NA?

Ans. When NA is displayed as CIBIL Rank, it means that the rank could not be generated for your Company Credit Report. This can happen because CIBIL generates the rank only for businesses with outstanding loans between Rs. 10 lakh and Rs. 50 crores.

Q. What should I do if there is a mistake in my Company Credit Report (CCR)?

Ans. You should raise a dispute to rectify the incorrect information in such a case. Click here to know how to file an online dispute with CIBIL.

Also Read:

How to Download your free CIBIL score and CIBIL report online

No Credit History? Here is How to Build CIBIL Score from Scratch

Reasons for Loan Rejection Despite 750+ CIBIL Score

Common Myths About Credit Score

Know How to Calculate CIBIL Score?