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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!
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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.
Now that you are familiar with the purpose of the CIBIL Commercial Report, discover some of its significant characteristics below:
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:
|It is for individuals.
|It is for businesses.
|The CIBIL Score ranges from 300 to 900.
|The CIBIL rank varies from 1 to 10.
|It’s an overview of the CIBIL Credit Report.
|It’s a synopsis of the CIBIL Commercial Credit Report.
|The closer the score is to 900, the chances of loan approval are higher.
|The closer the score is to 10, the chances of loan approval are higher.
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.
The Commercial CIBIL Report contains an array of information grouped into the following categories:
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.
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.
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:
If your company is registered as a private or public limited, then you have to present the following documents:
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:
Note: The proprietor must self-attest all the above-mentioned documents.
If you own a partnership firm with one or few other partners, then you must submit the following documents:
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:
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 —
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.
For ownership dispute, provide the description in the following format:
Member Name: ABC Bank, Account number: 5678 does not belong to our company.
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It is an overview of your Company Credit Report. The CIBIL rank ranges from 1 to 10. The closer the borrower’s company rank is to 10, the chances of loan approval are higher.
It’s a unique number generated every time somebody accesses your Company Credit Report from CIBIL’s database.
CIBIL members, including financial institutions and banks, can access the CIBIL rank and CCR of any company applying for a loan.
Yes, if you operate a business/company or are a lender, you can download the Company Credit Report from the official portal of CIBIL. Also, you must have a valid membership with CIBIL to download the CCR.
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