CIBIL Commercial Report

Whenever somebody approaches a bank for a loan, the lender examines the CIBIL report first. The report renders crucial credit information about the borrower, such as the CIBIL score, credit history, loan-to-debt ratio, and more. Similarly, a CIBIL Commercial Report helps lenders to make an informed decision about lending loans to various business entities.

CIBIL report differs for individuals and companies. CIBIL generates a credit score with a CIR (Credit Information Report) for individual borrowers. However, CIBIL creates a CCR (Company Credit Report) for commercial borrowers like firms and corporations.

Have a rundown on this guide to comprehend the fundamentals of the Commercial CIBIL Report in detail!

What is CIBIL Commercial Report?

A CIBIL Commercial Report (CCR) is a detailed statement of the creditworthiness of a commercial entity. It provides you with a multi-dimensional credit file and thorough information on potential commercial borrowers, which helps lenders make more informed decisions about lending.

The borrowers include private limited companies, public limited companies, proprietorships, and partnership firms. The Commercial CIBIL Report renders a range of data about businesses’ financial health. Typically, it offers information varying from credit data sets depending on business requirements to risk scores and more.

As a lender, you can use the report to assess the financial duty of potential borrowers and mitigate the chances of serial and concurrent defaults. As a credit grantor, this helps you to build better opportunities for your enterprise.

Features of CIBIL Commercial Report

Now that you are familiar with the purpose of the CIBIL Commercial Report, discover some of its significant characteristics below:

• The lenders can access the credit history of commercial entities seeking loans.
• Since you are aware of the borrower’s financial history, risks are fewer, and you can lend without much hesitation.
• The credit gets disbursed instantly.
• You can have a deep insight into the overall borrowings across several banks or lending institutions.

Difference Between CIBIL Score and CIBIL Rank

Similar to individuals, businesses and firms also seek loans to operate their businesses and for various other purposes like business expansion, hiring more workforce, buying new equipment, and more. When they apply for a loan, the lenders approach credit bureaus like CIBIL (Credit Information Bureau India Limited) and pull borrowers’ credit history. It is where CIBIL ranks and CIBIL Commerical Report help.

CIBIL rank and CIBIL score might seem similar, but they differ on various grounds. The differences between them are mentioned below:

Steps to Obtain the CIBIL Commercial Report

If you are planning to obtain the CIBIL Commercial Report, you must keep at least ₹ 3000 handy. Follow the below-mentioned steps to get your Company Commercial Report from the CIBIL:

Step 1: Navigate to the official CIBIL portal — cibil.com/online/Company-credit-report.do.

Step 2: Now, fill out the application form with the required information such as the registered address of the company and legal constitution, name and address of the applicant requesting the Company Credit Report, contact details of the applicant and company, enclosed documents details and additional info, and PAN and other details.

Step 3: Then, pay ₹ 3000 through your preferred mode of online payment options available.

Note: Taking a subscription is important to obtain a Company Credit Report.

Step 4: The credit bureau will issue a unique Registration ID to your application request after successful payment. Also, CIBIL will mail your Transaction ID to your email ID.

Step 5: Now, your KYC (Know Your Customer) documents. Post submission, you will receive your CIBIL rank and the CCR at your company’s registered address within seven days.

Sections of Commercial Credit Information Report

The Commercial CIBIL Report contains an array of information grouped into the following categories:

1. Identification: The section is at the top of the Commercial Credit Information Report. It contains the following:

• Report Order Number — a unique number is generated every time someone accesses your report from CIBIL’s database.
• Report Ordered By
• Application Reference Number
• Report Order Date
• Member — sample bank

2. Enquiry Information: The section comprises search parameters such as the company’s name, identifier, and address.
3. Borrower’s Profile: As the name suggests, the section represents the borrowing company’s demographic information. It is categorised into four sub-categories as follows:

• Borrower’s details, such as the company’s name, class of activity, legal constitution, industry type, business category, sales figure, number of employees, and date of incorporation
• Address and contact details, including the registered office address, mobile number, telephone number, and Fax number.
• Identification Details containing PAN, registration number, TIN (Taxpayer Identification Number), CIN (Corporate Identification Number), Service Tax Number, and Last Reported Date.
• Delinquencies reported on the borrower comprising particulars like payment status of the borrowing company or guarantor.

4. CIBIL rank: This section offers details of CIBIL rank, which is a complete summary of your Company Credit Report. CIBIL rank contains Rank Name, Rank, CIBIL MSME Rank, and Exclusion Reasons.

CIBIL rank ranges from 1 to 10. If it’s mentioned as NA, this means that the credit bureau is not able to generate the CIBIL rank. It is because the CIBIL rank is issued only to businesses with outstanding loans ranging from ₹10 lakhs to ₹50 crores.

5. Credit Profile Summary: The section is mainly designated to provide details about the borrower’s credit profile. It includes details like the number and type of lenders, open credit facilities, total outstanding amount, and the payment status of the credit facilities that the guarantor or company has availed.
6. Enquiry Summary: This field offers a summary of enquiries conducted in the last 24 months on the borrower by lenders.
7. Derogatory Information: Details regarding the suit filed, wilful defaults, credit facilities invoked/devolved, write-offs, count of dishonoured cheques, and overdue credit facilities of the borrower and related guarantor/parties are provided in this section.
8. Outstanding Balance Details: This section is a form of a synopsis of asset classification for a bunch of credit facilities that the company avail of. Credit facilities comprise Term Loans, Working Capital, Forex, and Non-Funded amount. Asset Classification is further classified based on days past due (DPD) — Standard and Non-Standard.
9. Location Details: As evident from its name, the section mainly describes the company’s location or contact details. It contains the location type, address, the first and last reported dates, who reported it, contact number, and the Fax number.
10. Relationship Details: A related party could be an entity or an individual. This section contains information about the demographics of all the entities. Those details include name, type, relationship, date of birth, percentage holding, gender, address, mobile number, and identification details such as PAN, Voter’s ID, etc.
11. Credit Facility Details – As Borrower: The particulars of credit facilities obtained by the company are mentioned in this section. It is further divided into the following sub-categories:

• Credit Facility Detail
• Type of Credit Facility availed of
• Member
• Account Number
• Asset Classification DPD (Days Past Due)
• Status – open/close
• Status Date
• Last Reported Date
• Overdue Details
• Cheque(s) Dishonoured due to Non-Sufficient Funds.

12. Credit Facility Details – As Guarantor: Similar to the above-mentioned section, this one also contains details about the credit facility, but these are guaranteed by the company. It also displays the demographic of the entities being guaranteed.
13. Suit Filed Details: The section contains a consolidated list of the suit-filed details reported by all the banks/lender for the company. It comprises the name of the lender who filed the suit, credit lender name, office address, suit amount, suit status, date of suit, and suit reference number.
14. Credit Rating Summary – As Reported by Members: This section displays the latest three credit rating information given by the external accredited rating agency to the company. It represents the Credit Rating, Rating Date, Rating Expiry Date, and Last Reported Date.
15. Enquiry Details in the Last 24 Hours: This section offers details on the enquiries made by lenders in the last two years. It contains information such as Credit Lender, Enquiry Date, Credit Type, and Enquiry Amount.

Factors Impacting the Commercial CIBIL Report

The following are the factors that may affect the company’s credit rank as well as the CIBIL Commercial Rate:

Credit-to-Debt Ratio: A credit-to-debt ratio depicts the company’s credit utilisation ratio. If a company has a higher credit utilisation ratio, it is spending its borrowed funds faster than required. It has a negative influence on the company’s credit report.

Credit History: The length of the company’s credit history has an immense impact on the CCR. The longer the credit history, the better it would be for the company’s commercial report.

External Debts: Also known as the number of debts outstanding, external debts may leave a negative impression on your company’s CCR as lenders consider the outstanding amount. Therefore, it is crucial to sustain and keep only feasible amounts of dues.

Previous History: An operation fund is an essential requirement for every business as it helps the company to fulfil the everyday expenses of a business cycle. Such funds are obtained through loans, which are supposed to be paid in EMIs. All the borrowing entities must pay their EMIs on time as a good indicator of financial performance.

Industrial Sector: Specific industrial sectors have a higher risk and impact the company’s CIBIL Commercial Report. For instance, if your company operates in the oil and gas sector, deemed to have high volatility due to global market conditions, the lenders will consider your company less creditworthy compared to companies in other stable sectors like insurance and banking.

Company Profile: The company profile mainly indicates the life and size of the corporation. Usually, older and bigger organisations have a well-established financial history. Therefore, they are considered more credible than startups and new businesses.

Documents Required to Check CIBIL Commercial Report

Every entity has to submit a different set of documents to obtain a CIBIL Commercial Report. We have listed below the document requirements for different business entities:

For Private and Public Limited Companies

If your company is registered as a private or public limited, then you have to present the following documents:

• Identity proof of one of the authorised signatories, which may include a Passport, PAN, or Driving License
• Any one address proof from the following: passbook or bank account statement, telephone or electricity bill, sale agreement of office premises/registered lease, address proof issued by multinational or commercial banks, registration certificate issued under Shops & Establishment Act
• PAN card of the company
• A scanned copy of the board resolution along with the authorised specimen signature and signatory list

For Proprietorship

If you are a single owner of the business/company or have your business registered as a sole proprietorship; then you have to submit the following documents to check Commercial CIBIL Report:

• Proof of Identity of the proprietor, which could be a Driving License, PAN, or Passport
• Any of the following proof of address — registration certificate issued under the Shops & Establishment Act, electricity or telephone bill, etc

Note: The proprietor must self-attest all the above-mentioned documents.

For Partnership Firms

If you own a partnership firm with one or few other partners, then you must submit the following documents:

• PAN of the partnership firm
• Copy of certificate of registration or partnership deed
• Identity proof of partner requesting for the Company Credit Report, which may include Passport, Driving License, or PAN
• List of specimen signatures along with authorised signatories

How to Improve the CIBIL Commercial Report?

If your CIBIL rank is low and you plan to get a business loan, you must take stringent steps to improve it. Following are the steps to follow:

• Pay Your Dues on Time: Whether you avail of a personal or business loan, the best way to improve your credit score or rank is to pay dues or EMIs on time. It will help you maintain a good repayment history.
• Ensure You have Fewer Debts: If you have numerous debts, you must try to pay them off as much as possible. When you maintain the feasible amount of outstanding debts; it prevents your company’s repayment ability from getting affected.
• Balance Between Assets & Liabilities: Your liabilities should never exceed your company’s assets. Always maintain a good balance between the two.
• Long Credit History: Usually, lenders prefer good and long credit history. Hence, try to sustain a long credit history. It will automatically enhance your business’s creditworthiness.
• Low Credit Utilisation: Over Credit Utilisation is not good for your credit report. Hence, keep a low credit utilisation ratio to improve your company’s credit rank.

How do I Rectify Information on CCR?

If the information registered on your CCR seems incorrect, you can raise a dispute with CIBIL. The portal offers an online commercial dispute form where you can provide details of the dispute, such as —

• Company Name and Registered Address
• Branch Address, if any (optional)
• Name of Authorised Signatory
• Contact details such as your phone number and email address
• Company PAN
• Report Order Number — a unique 10-digit number that reflects on the top right-hand side of your Credit Information Report (CIR)
• Date of Report
• Reason for Dispute

Click on the following link to access the dispute form — https://www.cibil.com/online/file-company-dispute.do.

Once you have furnished the required information, enter the CAPTCHA code and click on the ‘Submit’ button.

Given below are a few tips to help you raise a dispute in different circumstances:

Dispute on Account Information:

If you find any disparity in the account details on your CCR, such as the account number, current balance, etc., you must mention the following:

Member Name: XYZ Bank, Account Number: 5678, Last Payment Date: 31/08/2022, Current Balance: ₹25,000/- as per CIBIL Report. The correct last payment date is 03/11/2022,  and the amount last paid was ₹7,000/-.

Dispute on Company Information:

If your company name is registered incorrectly on the report, report the dispute as the following:

My Company Name in CIBIL Commercial Report is XYZ Ltd, and the correct Company Name is QPR Ltd.

Ownership Dispute:

For ownership dispute, provide the description in the following format:

Member Name: ABC Bank, Account number: 5678 does not belong to our company.

Frequently Asked Questions (FAQs)