Are you an entrepreneur looking for a loan, and want to know what a commercial CIBIL report is?
Read ahead to know all about the commercial CIBIL report as well as how to check company CIBIL score.
The CIBIL score and report of an enterprise, institution, or corporation is known as commercial CIBIL.
Individuals who take credit have a consumer CIBIL score and report. Similarly, a company who has been taking credit (under Rs.50 Crore), can see their credit history, repayment behavior, etc. on their company CIBIL report.
With a better commercial CIBIL report, an enterprise will be able to procure loans at lower interest rates.
The company CIBIL score summarizes your company credit report or the CCR in one number. The ranks are given based on the creditworthiness of your enterprise. The ranks range from 1 to 10, where a lower rank is considered better.
TransUnion CIBIL receives information regarding your credit repayment history from various lenders and compiles it to generate your CIBIL report. The commercial CIBIL score is calculated based on your credit utilization and repayment behavior.
You can check your company CIBIL report by yourself on the CIBIL website. Unlike the individual credit report, you cannot obtain a commercial CIBIL report for free.
Here are the steps you can follow to make a payment and successfully receive your report at your company’s address -
A detailed CIBIL commercial report has the credit history of your company. Here are the main sections that are mentioned in your commercial CIBIL report along with the information they have -
Your company credit report is an overview of how you manage your organization’s finances. Here are some important factors that affect your company CIBIL report -
The company profile refers to the size and life of a company. Companies that have been running for longer, generally have more stability, higher turnovers, as well as better financial history.
Thus, they might have a better CIBIL rank along with an appealing commercial CIBIL report.
This is directly connected to the EMIs paid for the past loans taken by the company. Managing your past dues and being punctual with EMIs will positively impact your company’s CIBIL report.
The credit utilization ratio refers to the loans you have out of the total credit available to you. If this ratio is high, it makes you look credit hungry and may impact your CIBIL report negatively. Thus it is a good idea to keep your CUR under control.
Your outstanding debts refer to the number of external ongoing debts you have. Having a huge sum of unpaid debt, or a new debt, is bound to affect your credit report negatively. Thus, it is crucial to keep only a feasible amount of dues.
Your company’s credit history involves the number of years for which you have actively taken and repaid loans. A longer credit history with timely payments is always better for your company’s commercial report.
Know Your Credit Health Instantly
Just like how credit score calculates the creditworthiness of an individual, a commercial CIBIL report calculates if a company will be able to repay the loans it is applying for. You can check your company’s CIBIL directly from the website.
Having a good CIBIL report will help you to get higher commercial loans at a lower interest rates. Even the process of applying for the loan gets easier if you have a higher commercial CIBIL rank.
The major difference between a consumer CIBIL and a commercial CIBIL is that the former is for checking an individual’s creditworthiness, while the other is for companies, and organizations.
Apart from this, commercial CIBIL ranks range from 1 to 10, 1 being the best rank one can have. Whereas, consumer CIBIL score ranges from 300 to 900, where a higher score is considered better.
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