Company Credit Report (CCR)

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.

CIBIL Rank

Just as individuals are given a CIBIL Score ranging from 300-900, companies are assigned CIBIL Rank ranging from 1 to 10, where 1 is best and 10 is worst. The closer your CIBIL rank is to 1, the higher are your chances of securing a loan. A CIBIL Rank between 4 and 1 is also considered good by most of the 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 in the criteria.

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

Factors that effect Company Credit Report

The CCR for your company is prepared by CIBIL after having a good look at your company 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. Longer the credit history, better it is for your Company Credit Report.

Credit Utilization Ratio – CCR of a company works in a manner similar to that of an individual’s. 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 amount 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 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, the industry related risks might also have a negative impact on 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. Obviously, other factors also count at the time of assigning a CIBIL Rank.

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

Steps to Check and Download Company Credit Report

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 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 both 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 below mentioned address:

TransUnion CIBIL Limited
One World Center, 19th Floor, Tower 2A and 2B,
841, Jupiter Textile Mill Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013

Tips to improve your CIBIL Rank and Company Credit Report

For improving your CIBIL Rank and 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:

• You must have taken loans in the name of your company. Taking a loan is not bad, defaulting on its payment is. So make sure to pay back all your debts in time and get rewarded with a better CIBIL Rank
• A number of companies make use of company credit cards. If you are using one, make sure to pay the EMIs on time as an outstanding debt can have negative impacts on your CCR and your CIBIL Rank could come down
• Sometimes, banks and credit institutions can also make a mistake while reporting your company’s transactions. Keep a close watch on each and every transaction and if there is any mistake, get it rectified to avoid repercussions in future
• Do not exhaust your entire credit limit. Only take loans that you think you can pay back in time. Maintaining a good balance of incoming and outgoing is always good for a company
• Taking loans for a long term and paying them on time is better as it creates a good image of the company in front of the credit institutions

FAQs

Q. How can I check my GST Report as a part of my Company Credit Report?

Ans. Yes, you can view your GST report with your Company Credit Report to view your company’s financial and credit health on a single online platform. Your GST report includes a GST filing summary, month-wise trend of GST paid, overview of monthly sales, comparison of sales and purchase trends in the last 24 hours and much more.

Q. How can I update the Company Credit Report, CIBIL Rank and GST Report?

Ans. There is no possible way that you can update your Company Credit Report (CCR), CIBIL Rank or GST report by yourself. This task is performed by the Credit Information Companies, including TransUnion CIBIL, Experian, Equifax and CRIF High Mark. CIBIL collects consumer and company information, as provided by lending banks and NBFCs for CIBIL to calculate and generate CIBIL rank for companies. Likewise, the credit bureau also updates CCR and GST reports simultaneously and on a monthly basis.

Q. How to Get Your CIBIL Company Credit Report (CCR)?

Ans. To check and download your CIBIL Company Credit Report all you need to do is visit the official website of TransUnion CIBIL https://cibilrank.cibil.com/ and fill out the detailed request form. Further, you need to choose from the plans offered by CIBIL that is for 1 month, 6 months and 12 months, respectively. After doing the payment, CIBIL shall provide you with the Registration ID and Transaction Id that shall be emailed to you on your registered email address.

Q. Why do companies need credit reports?

Ans. Credit reports are very crucial for companies in availing loans from various lenders across the industry. CIBIL Rank is the key determinant in the loan approval process that ranges from Rank 1 to Rank 10, wherein Rank 1 is the highest with high chances of approval and vice versa. Higher your CIBIL Rank is, higher are the chances of loan approval.

Q. How can I get a GST Report for my business?

Ans. You can get your business GST report along with your credit report with no extra cost. You shall require to perform a mandatory GSTIN and GSTIN-based authentication to avail your business GST report. Your GST report will be available on the dashboard, in addition to your Credit Rank and Company Credit Report.

Q. Can I purchase my GST Report without CIBIL Rank and Company Credit Report?

Ans. As your GST report comes along with CIBIL rank and Company Credit Report, so it is not possible and useful to purchase it separately. Your GST report is available at no extra cost.

Q. I do not have a GSTIN for my business. Will I not be able to access CIBIL Rank and Company Credit Report?

Ans. If you do not have a GSTIN for your business, still you can access and download your Company Credit Report. You shall only need to upload your KYC documents to authenticate the request, Once your documents are verified, you shall receive a notification. Afterwards, you will be able to view your CIBIL Rank and Company Credit Report.

Also Read:

How to improve and increase your CIBIL Score with 10 Easy Steps?

How can I remove my name from CIBIL settlement?

Check your CIBIL Score by using the PAN Card?

How do I get a credit report with no credit history?