TransUnion CIBIL is the leading credit information companies operating in India. It maintains the database of credit history of India’s existing borrowers. Using this data it generates credit reports for individuals as well as businesses. Such reports provide insights to lenders, including banks and Non Banking Financial Companies (NBFCs), so that they can assess the risk of potential borrowers prior to lending. CIBIL Commercial refers to the reports prepared for potential commercial borrowers, such as public limited companies and private limited companies. In the following sections, key aspects of the CIBIL Commercial Report are discussed, including tips to improve your commercial CIBIL report.
What is CIBIL Commercial Report?
Just as CIBIL generates CIBIL Score and CIBIL Report for individuals, it generates CIBIL Rank and Company Credit Report (CCR) for commercial organizations, including public limited companies, private limited companies, partnership firms and proprietorships. The CIBIL Commercial Report serves as a record of the company’s credit history, based on the data submitted by various lending institutions across India. It serves as a strong indicator of the company’s future credit activity, and hence it is important to understand the various parts of CCR.
Also read Cibil Credit Report.
Sections of Commercial Credit Information Report
Commercial Credit Information Report contains a host of information that is grouped in the following 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 Profile: It is further divided into 4 sub sections:
- Borrower 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 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. 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, overdues and dishonoured cheques.
7. Outstanding Balance Details: This section provides an overview of company’s asset classification with respect to the credit facilities availed.
8. Location Details: This sections 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.
Why is CIBIL Commercial Report Important?
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 historic financial behavior of commercial organizations and hence is indicative of their creditworthiness.
What is CIBIL Rank &What is the Eligibility Criteria to get CIBIL Rank?
CIBIL Rank provided to commercial entities and is analogous to the CIBIL Score given to individuals. It summarizes the entire Company Credit Report (CCR) in one digit on a scale of 1 to 10. The credit rank basically indicates your likelihood of defaulting payments. Hence lower the rank, better are the chances of getting a loan. Thus, 1 is the best rank that can be achieved.
However, it should be noted that not all companies are assigned a credit rank. Only businesses with a credit exposure of Rs. 10 lakh to Rs. 50 crore are eligible to get a credit rank.
Also Read about Credit Score.
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 Partnerships
- 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 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: The above documents should be self-attested by the proprietor.
How to Download a Company’s CIBIL Commercial Report?
You can check your company’s CIBIL rank and download commercial credit information report by following the below mentioned steps:
Step 1: Visit the Company Credit Report portal of CIBIL.
Step 2: Enter your company details. Check the declaration box and click “Proceed”.
Step 3: Make a payment of Rs. 2100 to access your CIBIL rank and CCR.
Step 4: Finally, upload the required KYC documents to get the CIBIL commercial report.
Alternatively, you can post the duly filled CIBIL Rank & CCR Request Form along with the required KYC documents and payment to the following address:
TransUnion CIBIL Limited,
One Indiabulls Centre, Tower 2A, 19th Floor,
Senapati Bapat Marg, Elphinstone Road,
Mumbai – 400 013
Tel.: 61404300 | Email:firstname.lastname@example.org
Commercial CIBIL Report Login Process
You first need to register for the Company Credit Report in order to login to the CIBIL commercial portal. When you complete the payment, as mentioned in step 3 of the above section, you will receive a CIBIL registration ID, password and payment transaction ID on the registered e-mail address linked with your company account.
Use the registration ID and password so received to login to the commercial CIBIL portal.
Factors Affecting CIBIL Commercial Report
Following is the list of the major factors that affect 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 cheaper 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.
How can I Improve the CIBIL Rank?
The following are some key actions that can help you improve the CIBIL Rank as these get recorded in your commercial CIBIL report:
- Always pay 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 company’s assets and available liabilities.
Frequently Asked Questions (FAQs)
Q1. What is Company Credit Report (CCR)?
Company Credit Report (CCR) is prepared by TransUnion CIBIL for companies based on the company’s repayment history and information provided by various financial institutions. It serves as a measure of the creditworthiness of the business and hence plays a crucial role in approval of business loans.
Q2. What is CIBIL rank?
Ans. CIBIL rank refers to the summary of your Company Credit Report in the form of one number. It ranges on the scale of 1 to 10.
Q3. Who can access Company Credit Report and CIBIL rank?
Members of CIBIL, including leading banks and financial institutions can access Company Credit Report and CIBIL Rank.
Q4. 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.
Q5. 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.
Q6. What should I do, if there is a mistake in Company Credit Report (CCR)?
Ans. You should raise a dispute to rectify the incorrect information in such a case. Click here to fill the online dispute form to initiate the request.
Q7. How is CIBIL rank different from CIBIL score?
Ans. CIBIL rank is the numeric summary of the credit history mentioned in a Company Credit Report, while CIBIL score is the summary of the information in an individual’s credit report. Thus, CIBIL Rank is applicable only for businesses, while CIBIL Score is applicable only to individuals. Moreover, the rank varies on a scale of 1 to 10, whereas the score varies on a scale of 300 to 900.
Q8. How can I improve my company’s CCR?
Ans. You can improve your company’s CCR by maintaining a good repayment history and a low credit utilization ratio.
Q9. What is the best CIBIL rank?
Ans. CIBIL rank varies on a scale of 1 to 10. It indicates the chances of payment default, which means lower the rank, better it is. Hence, 1 is the best CIBIL rank a company can achieve.
Q10. How can I download Company Credit Report?
Ans. You can download the report from the Company Credit Report (Commercial) portal of CIBIL.