CIBIL Commercial Report - Meaning, Features, Steps to Undertake

Last Updated: 14 Oct 2024

When it comes to businesses, a CIBIL commercial report offers multi-dimensional and comprehensive credit filing information on prospective commercial borrowers. Understanding the report helps one make a well-informed lending decision. If you want to learn further about the CIBIL commercial report, get a brief understanding of the CIBIL credit score from the given pointer:

What Exactly is A CIBIL Credit Score?

Unlike a CIBIL credit score for individuals, the tables of CIBIL for a firm or business are all-around different. CIBIL generates credit scores alongside (CIR) credit information reports. Commercial borrowers need it as CIBIL generates an organisation’s credit report. These borrowers include the following:

• Public Limited Companies
• Private Limited Companies
• Partnership Firms
• Proprietorships

So, just as a CIBIL score is an individual’s lending worth, the trade report by CIBIL emphasises an establishment’s lending value. This report is a systematic declaration that reflects a firm’s financial health considering the information acquired from financial institutions and banks.

The all-encompassing report is used to determine the firm’s creditworthiness when the requirement for a commercial loan arises. Note down the most important details that are included in the report:

• The Background of the Company:

  Including the company’s background information like legal establishment, ownership, number of years the company has been operating, and branches

• Financial Details:

  Financial data helps decide the credit standards of the firm

• Financial History:

  It includes financial information such as payments, income production, and collections.

The CIBIL ranking is also an important factor that is similar to the CIBIL score.

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Features of CIBIL Commercial Report

Once you’re aware about What is commercial cibil report? It becomes quite easy to understand all of its features. Here are the few features of commercial CIBIL report:

• The lender may get access to the company’s credit history that seek loans
• As you are familiar with the financial history of the borrower, there are fewer risks for you to lend.
• The credit will be disbursed immediately.
• With this, you get an in-depth understanding of the borrowings around different lending institutions or banks.

Components of Commercial Credit Report

The following are the essential components of a commercial credit report that help loan lenders make decisions easily.

• Identification

  Identification in a commercial CIBIL report refers to detailed business information such as legal name, address, registration numbers, and ownership details. Accurate identification ensures proper business verification, enabling lenders to engage in transactions confidently and mitigating risks associated with identity fraud.

• Inquiry Information

  Inquiry information records instances where lenders or creditors access businesses’ credit profiles. It includes the identity of inquiring entities and the purpose behind the inquiries. Monitoring this data is vital for businesses, as excessive inquiries might indicate financial stress or frequent borrowing, influencing lenders’ decisions.

• Browser Profile

  In commercial CIBIL reports, a browser profile isn’t a component typically included. Instead, the focus is on financial data relevant to business creditworthiness. Businesses are evaluated based on their financial history, transactions, and adherence to payment schedules rather than online activities.

• CIBIL Rank

  CIBIL Rank in a commercial context represents a business’s creditworthiness, indicating its ability to meet financial obligations. A higher rank suggests a strong credit profile, enhancing trust among potential creditors. Lenders use this rank to assess risk, set credit limits, and offer favorable terms, fostering healthy financial relationships.

• Credit Profile Summary

  The credit profile summary concisely overviews a commercial entity’s credit history. It includes details about active credit accounts, payment history, outstanding balances, and credit limits. A positive summary, reflecting timely payments and responsible credit usage, enhances the business’s credibility and increases its chances of obtaining credit.

• Enquiry Summary

  The inquiry summary compiles information about recent credit inquiries made by various creditors or lenders. This data is crucial for businesses to understand who has accessed their credit information and for what purpose. Monitoring this section strategically helps manage business credit applications, ensuring responsible borrowing and maintaining a favorable credit profile.

Steps to Undertake to Get the CIBIL Commercial Report: What to Follow?

Wondering how to get commercial CIBIL report? You can get the CCR from the official CIBIL website. But note that you need to pay a subscription fee of Rs. 3000 to get access to the CCR.

After which, you can follow the below-offered steps to obtain the Commercial CIBIL report:

• Visit the official CIBIL website, which is: https://www.cibil.com/cibilrank.
• Step-1: After this, you need to fill up the application form with requested information like the legal constitution & registered company address, applicant’s address, name as well as contact details of the applicant and company, enclosed document details, PAN and other details, and other information.
• Step-2: Next comes the payment process: you need to pay a subscription fee of Rs 3000 through the digital options.
• Step-3: After you pay the fee, CIBIL will then assign a unique Registration ID & Transaction ID to the application request. You can get the details easily via mail.
• Step-4: In the last step, you need to upload all the KYC documents. After submitting the documents, the CIBIL and CCR rank will then be delivered within seven days at the registered address of your company.

So, these are the ways how to get commercial cibil report.

Parameters That Affect the CCR: Which Factors Influence the Score?

After learning what is CIBIL commercial report, it is time to get an idea of the parameters that affect the CCR:

• Credit History

  The CCR is affected by the credit history’s length of the company. With a longer credit history, there will be a better CCR report.

• External or Outstanding Debts

  Did you know that external debts may have a negative impact on the CCR of the company? The credit institutes consider the overall outstanding amount. So, keeping feasible amounts is imperative to avoid affecting the CCR due to external debts.

• Credit to debt ratio

  Next comes the credit-to-debt ratio, which represents the company’s credit utilisation ratio. If the credit utilisation is higher, the company spends the borrowed funds more speedily. This imposes a negative impact.

• Previous History

  Operational funds help companies meet the requirements of the business cycle. The funds are availed via loans, which the company has to pay through EMIs. Companies and individuals need to pay EMIs timely, which is an excellent indicator of financial health.

• Company’s Profile

  The company’s profile evaluates its life and size. If the establishment has been operating for several years, it may have an excellent financial history. So, it is sought to be trustworthy and credible when compared to any startup or new enterprise.

• Sector When It Is Operating

  Industrial sectors have greater risks and impacts on the overall CCR. For instance, when the company works in the gas and oil industry, it may have a higher volatility because of international market conditions. So, it will be less trustworthy when compared to other stable industries like insurance or banking.

CCR’s GST report and its Business usage

When any of the businesses apply for commercial loans, numerous types of information related to company credit reports, GST reports, and CIBIL reports are needed to approve the loan. However, all the information is checked by a lender or any financial organization before offering a loan to the business. That means lenders, suppliers, and business partners review this information to gauge the company’s tax compliance and financial responsibility. It can influence decisions regarding extending credit, entering into partnerships, or conducting business transactions. A positive CCR’s GST report suggests that the business is meeting its tax obligations, which can build stakeholder trust and confidence. Conversely, a negative report may raise concerns and lead to more cautious business dealings.

Top Ways to Get a Better CCR

Here’s a list of points to learn if you want to improve CCR:

• Pay the outstanding & existing EMIs on time, irrespective of whether it is a business or personal loan.
• When using the company’s credit or corporate card, one should pay EMIs timely. Remember, outstanding debt will have a negative impact on the CCR that reduces the CIBIL Rank.
• Learn the company’s latest credit statements and transactions.
• Take into consideration the money that’s coming or going to keep a good check on the credit limit. It is a great way to keep a note of the credit limit. Also, you will learn how much credit you can borrow from the bank.
• Opt for a long-term loan and pay it timely as it creates a good image for the company.

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Now that you have learned everything about the Commercial CIBIL report, it is time to proceed seamlessly.

Frequently Asked Questions

What is Commercial Cibil Report??

CIBIL CCR (Credit Information Bureau India Limited Credit Information Report) is a credit report detailing an individual’s credit history and repayment behavior.

What is a ‘Write Off’?

A ‘write-off’ is a financial accounting practice where a company removes a non-collectible debt from its books as a loss.

What is CMR in Commercial CIBIL?

CMR in Commercial CIBIL refers to a Credit Monitoring Report, providing businesses with credit-related information to assess risks and make informed decisions.

Who can access the Company Credit Report and CIBIL rank?

Lenders, financial institutions, and businesses can access Company Credit Reports and CIBIL ranks for evaluating creditworthiness and financial stability.

What is the Report Order Number in the Company Credit Report?

The Report Order Number in a Company Credit Report is a unique identifier assigned to each credit report request for tracking and reference purposes.

Can I purchase a GST report without paying for the Company Credit Report?

The business GST Report is only available as a part of CIBIL’s Company Credit Report subscription plans without any charges.

Can I get access to my Company Credit Report if I do not have a GSTIN for my business?

If your company doesn’t own GSTIN, you can still get access to the company credit report.

How can I get a GST report for my company or business?

Yes, you can get the company’s GST report by visiting your country’s official GST portal. Log in, and generate the required report by providing the necessary business details and following the instructions.

What should I do if there is a mistake in my Company Credit Report (CCR)?

Contact the credit bureau immediately if you find a mistake in your Company Credit Report. Provide evidence of the error and follow their dispute resolution process to rectify it.