Company Credit Report (CCR) is an elaborate document representing the financial health of an organization compiled on the basis of business and financial information received from different credit institutions. This report is checked by banks and NBFCs to estimate the creditworthiness of an organization. Your Company Credit Report and Credit Rank is 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 a loan.
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 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, generates CIBIL report for the individuals, other Credit Information Companies (CICs) or credit bureaus prepares Company Credit Reports (CCRs) for the enterprises and the organizations. While this is a generic report format, it may differ from one bureau to another because of the different algorithm used by each credit bureau. The company credit reports generated by all credit bureaus are based on the business information provided by the lending banks and NBFCs.