Commercial CIBIL Report - All You Need to Know

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. 

With a better commercial CIBIL report, an enterprise will be able to procure loans at lower interest rates.  

What is Company Credit Report(CCR)?

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. 

How to Check Commercial CIBIL Score?

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 - 

STEP-1: Visit the official CIBIL website and go to the ‘CIBIL Report Products’ section on the main menu.

Screenshot From CIBIL Offical Website

STEP-2: Choose the ‘CIBIL Rank and Company Report’ option and click on the ‘Subscribe Now’ button.

STEP-3: You will see three plans - Basic, Standard, and Premium where you can access your company CIBIL report for 1, 3, and 6 months, respectively. Click on the ‘Get for One Month’, ‘Get for 6 Months’ or ‘Get for 12 Months’ button based on your requirement.

Screenshot From CIBIL Offical Website

STEP-4: You will be redirected to a page where you will have to enter your company GSTIN. Then, tick on the checkbox, and click on ‘Enter GSTIN and Go Paperless’.

Screenshot From CIBIL Offical Website

STEP-5: You will be able to see your company details, including name, address, PAN. If there are any sections that are blank, fill them up promptly. Finally click on the checkbox at the bottom of the screen, and click on ‘Submit and Continue to Step 2’.

Screenshot From CIBIL Offical Website

STEP-6: On the next screen, choose the mode of payment and complete it.

STEP-7: Once you have completed the payment, CIBIL will send you an email with the details of your transaction ID and registration ID.

STEP-8: Finally you will have to upload your KYC documents. After this, you will receive your CIBIL commercial report and company CIBIL score on your registered company address within 7 working days.

What is Covered in a Commercial CIBIL Report?

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 - 

• Identification - Unique number that is assigned every time you generate your CIBIL commercial report.
• Enquiry Information - Information related to the company, address, etc.
• Borrower Profile - Latest demographic details of your company, divided into 4 sub-sections:

1. Borrower Details, i.e. the company name, legal constitution, class of activity, etc. Class of activity in commercial CIBIL refers to the occupation of the borrower, the classification or nature of their business or activity. 
2. Address and Contact Details, i.e. the registered office address, phone number, etc.
3. Identification Details, i.e. the PAN, company registration number, etc.
4. Delinquencies Reported on the Borrower, i.e. the payment status of the company and the guarantors.

• CIBIL Rank - Summary of the credit report in a single digit, between 1 to 10, which is referred to as the company CIBIL rank.
• Credit Profile Summary - Information about the number & type of lenders, total outstanding amount, etc.
• Enquiry Summary - Overview of the enquiries done on the borrower in the past 2 years.
• Derogatory Information - Information related to defaults, write-offs, dishonored cheques, etc. 
• Outstanding Balance Details - Overview of the company’s asset classification for a group of credit facilities.
• Location Details - Additional contact information of the company, as well as number of lenders reporting it.
• Related Parties Details - Information about related individuals or entities.
• Credit Facility Details (As Borrower) - Details of the credit facilities availed by the company.
• Credit Facility Details (As Guarantor) - Details about the credit facilities guaranteed by the company.
• Suit Filed Details - Details of suits filed (if any) by all lenders for the company.
• Credit Rating Summary - The latest three credit rating information assigned by an external accredited rating agency.
• Enquiry Details - The enquiries made by lenders before approving loans.

Factors that Impact Your Commercial CIBIL Report

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 - 

Company Profile 

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. 

Payment History

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.

Credit Utilization Ratio

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. 

Outstanding Debts

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.

Credit History

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.

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.