Company Credit Report (CCR)

Just as individuals are issued a CIBIL Score ranging from 300-900, similarly companies are assigned CIBIL Rank ranging from that scale of 1 to 10, wherein Rank 1 is considered best with a high possibility of getting funds and Rank 10 is considered as worst, close to default with nil chances of credit approval.

The closer your CIBIL Rank is to 1, the higher your chances of securing a loan or business credit card. A CIBIL Rank up to 4 is also considered good by most lenders.

Majorly, repayment behaviour, and credit utilization are the two main parameters used to calculate a company’s CIBIL Rank. However, not having a CIBIL Rank should not be considered as a negative factor for companies. It just means that your company does not fall under the criteria.

Note: CIBIL Rank is only available for companies with current credit exposure of up to Rs. 50 crores.

The CCR for your company is prepared by CIBIL after having a good look at your company's traits and financial history. Here are a few factors that impact your company's CCR:

Length of Credit History – Similar to an individual’s credit report, a CCR is also influenced by the length of credit history. The longer the credit history, the better it is for your Company Credit Report.

Credit Utilization Ratio – The CCR of a company works like that of an individual. A higher utilization of available credit portrays a company as credit-hungry and hence it is considered less creditworthy.

Repayment History – Companies also have to avail several loans to keep their operations running and have to pay EMIs. Timely payment of outstanding amounts is always good- whether it is a company or an individual.

Outstanding Debts – The amount of debts outstanding with different credit institutions is taken into account by CIBIL while preparing your CCR. Hence, it is important to maintain and keep only feasible amounts outstanding.

Size and Life of the Company – Older firms are likely to have better scores on their CCR as compared to start-ups. The reason behind this is that the companies operating for a longer time with continuous growth ought to be more credible as compared to the ones that are smaller and newer.

Business Sector/Industry – Sometimes, industry-related risks might also hurt your CCR. For example, real estate is a high-risk industry because of the frequent ups and downs, so the companies that are a part of the real estate industry might be considered less creditworthy than others. Other factors also count at the time of assigning a CIBIL Rank.

Also Read: What are Some Factors that Affect Individual's Credit Score?

Though CIBIL does not provide a free credit report for your company, you can get access to it for just Rs 3,000. You need to fill out the request form by visiting the CIBIL website. Follow the steps given below:

Step 1- Visit the website: https://cibilrank.cibil.com/

Step 2- Fill out the detailed request form. It requires you to furnish information such as the 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- Choose your preferred plan (For 1, 6, or 12 months) and make payment (Rs. 3,000, Rs. 6,000, or Rs. 12,000) via debit/credit card, net banking, or cash card.

Step 4- After making the payment, CIBIL will assign you a unique Registration ID and Transaction ID which will be mailed to your email ID. You can use the ID to access the next steps.

Step 5- Upload your KYC documents to complete the process

After you complete the above five steps, the CCR and CIBIL Rank will be delivered to you at the earliest. In case you choose to purchase your CCR and CIBIL Rank through Demand Draft (DD), you can do so by downloading the request form and mailing it to the address below:

TransUnion CIBIL Limited
One World Center, 19th Floor, Tower 2A and 2B,
841, Jupiter Textile Mill Compound, Senapati Bapat Marg,
Lower Parel, Mumbai - 400013

Suggested Read : How to Download Your CIBIL Report Online

To improve your CIBIL Rank and Company Credit Report (CCR), you need to understand the factors that impact it as mentioned in detail above. In a nutshell, you need to keep the following points in mind to maintain a good financial track record for your company: