Company Credit Report (CCR) is an elaborate document representing the financial health of an organization, compiled based on business and financial information received from various credit institutions. CCR is checked by banks and NBFCs to estimate the creditworthiness and financial stability of a business, enterprise, company, or organization.
Your Company Credit Report and Credit Rank are highly important for your business or MSME loan approval. Lenders do request and check for your company credit report from the credit bureaus before loan sanctioning. It is recommended to check your company’s credit report before applying for any fresh credit.
Components of Company Credit Report (CCR)
- Background Information – The report starts by stating the business’s background information like its parent and subsidiary companies, ownership, years of operation, etc.
- CIBIL Rank – The report also mentions the company’s CIBIL Rank ranging between 1-10; the closer a company’s rank is to 1, the better its credit health is and vice-versa. It is an equivalent of the CIBIL score for individuals
- Financial Information – Next the report includes more financial details which determine the appropriate credit levels that lenders can let them borrow
- Financial History – CCR also includes a brief of the company’s financial history including the repayments, collections, revenue generation, and more.
Just like CIBIL, which calculates and generates CIBIL reports for individuals, other Credit Information Companies (CICs) or credit bureaus prepare Company Credit Reports (CCRs) for businesses, enterprises, and organizations. While this is a generic report format, it may differ from one credit bureau to another because of the different algorithms used by each credit bureau. The company credit reports generated by all the credit bureaus are based on the business’s credit information provided by the lending institutions.