What is a Company Credit Report?
CIBIL maintains a Company Credit Report (CCR) for all companies that have borrowing history. Banks report all the credit related data of companies every period to CIBIL. CIBIL collates this data to put together the CCR for companies. A CCR is a very important tool for banks and financial institutions to assess the financial responsibility of a borrowing company.
A CCR contains diverse data in form of previous credit history, credit risk scores, among other things based on analysis of the company credit profiles. The borrowing companies on which CCR’s are made include public limited companies, private limited companies, partnership firms, proprietorships.
The CCR can only be accessed by CIBIL members which includes banks and financial institutions. Only members who provide all their data to CIBIL are reciprocated with data access to CIBIL Company Credit Reports.
What does the Commercial CIBIL CCR contain?
CIBIL Company Credit Report contains the following information:
- Borrowing company details
- Name of company
- Registered Address
- D-U-N-S (Data Universal Numbering System) Number: This is the unique identification number of the company.
- Identification details such as PAN, Registration number, etc
- Report summary:
- CIBIL RANK
- Number of open credit accounts.
- Total balance of credit extended
- Guarantor Details
- Credit Account Details:
- Credit type
- Amount borrowed
- Total amount outstanding
- Details of guarantor
What is CIBIL RANK?
CIBIL RANK summarizes the Company Credit Report to a number which indicates the creditworthiness of the company. The CIBIL RANK is given on a scale of 1 to 10, where 1 is the best possible score. The CIBIL RANK is for companies what CIBIL Score is for consumers. CIBIL RANK is calculated by CIBIL based on the assessment of a company’s past history of credit utilization and credit repayment behaviour.
The CIBIL RANK is only given to companies that have a current credit exposure of Rs. 10 Lakhs to Rs. 10 Crores. Hence, non-availability of a CIBIL RANK is not a bad thing.
How to check your CIBIL RANK?
The process requires the following steps:
- One can check CIBIL Rank and Company Credit Report on CIBIL’s official portal
- Fill the online form
- Make a payment of Rs. 3000 through your card or net banking
- Upload KYC documents
- CIBIL RANK and Company Credit Report will be mailed to official company address
Benefits of Good CIBIL RANK:
A good Commercial CIBIL Report will give a company better creditworthiness with banks and financial institutions. This could help them with:
- Easy access to credit
- Cheaper interest rates
- Faster approval process
- Better credit terms
- Lower collateral requirements
How to improve CIBIL RANK:
One can have a good Commercial CIBIL score by adhering to some basic credit health practices:
- Make all your company loan payments on time
- Never default on any credit card or loan payments
- Check your Commercial CIBIL report often to ensure that there are no mistakes and that all information is accurate.
What is CIBIL iScan?
CIBIL iScan is a tool that provides banks with comprehensive details of company’s credit history. This tool will help the stressed banks with huge amounts of debt better evaluate their commercial customers on their creditworthiness.
FAQ – Commercial CIBIL
- What is CIBIL?
TransUnion CIBIL is one of the the 4 approved credit bureaus in India. It collects and collates records of credit history of both commercial establishments and consumers in India. Banks use the data from CIBIL to make decisions on lending applications.
- What is Commercial CIBIL?
Commercial CIBIL is the credit score issued by CIBIL TransUnion for companies, corporates, and commercial establishments.
- What is Consumer CIBIL?
Consumer CIBIL is the credit score issued by CIBIL TransUnion for individual consumers.
- What is the difference between Commercial and Consumer CIBIL?
While Commercial CIBIL is a credit score for companies, Consumer CIBIL is a credit score for individuals. The mechanics of both the tools are very similar in that both of them offer banks a tool to judge the customers’ credit worthiness.
- How does CIBIL get all the commercial credit data of customers?
By RBI mandate, all banks and NBFC’s in India are required to provide the 4 approved credit bureaus with all the credit data of their customers.
- What are the other credit bureaus approved by the RBI?
There are a total of four credit bureaus operating in India under the guidelines of RBI. They are:
- TransUnion CIBIL
- CRIF Highmark
- Do other credit bureaus also operate a commercial credit bureau?
CRIF Highmark also offers a commercial credit bureau to help service the banks’ needs of judging the credit worthiness of their commercial customers.
- What all information does the CIBIL company credit report contain?
CIBIL Commercial Credit Report (CCR) is a month on month record of a company’s debt related exposure and payments. The CCR captures cash credit, overdraft facilities, loans of all maturities, bank guarantees, letters of credit, packing credit, deferred payment obligations, forward contracts and any other debt exposure that a company has incurred. This information is captured for sole proprietors, partnership firms, limited and public limited companies to name a few.
- Why do companies need commercial CIBIL reports?
Companies need Commercial CIBIL reports because banks can then make better lending decisions based upon the credit worthiness of a given applicant. In India, we currently face a very big problem with debt issued to enterprises. Lending decisions driven by the past credit history of companies will make a better banking infrastructure for everyone in India.
- What does a DUNS number of 99-999-9999 mean?
If one’s DUNS number shows 99-999-9999, it means that the company has not been assigned a permanent DUNS number yet.