Company Credit Report (CCR)

 A company credit report (CCR) is a document that includes all the information about your business’ credit behaviour in the past. Your CCR contains information such as the loans taken by your firm in the past, its current credit obligations, its credit utilisation ratio, and the number of credit inquiries made by financial institutions.

 

CCR is one of the first documents that lenders access when you submit a business loan application. The lender analyses the document to assess your business’ creditworthiness and then decides whether to grant any additional credit to your business. You can get a CCR from TransUnion CIBIL at a low price of ₹2,499 on Bajaj Markets.

The steps that you need to follow to get your CIBIL company credit report are as follows:

• Click on the ‘CHECK NOW’

• Provide your company GSTIN if available and proceed. If not available, click on the ‘Continue without GSTIN to upload documents’ option.

• A pop-up notification will appear requesting you to confirm your selection. Click on ‘Continue without GSTIN’ to proceed.

• Provide your company details and contact information, then click on ‘CONTINUE’

• Complete the payment of ₹2,499. Once this is done, a registration ID as well as a transaction ID will be shared with you through email within minutes.

• Upload your KYC documents as per the list and options you see on the next page.

   

Once you complete these steps, your CIBIL rank and company credit report will be delivered to you at the earliest.

 Here are things you should keep handy before you start the process to get your CCR:

• Your entity’s GSTIN number and username

• Enable API access in the ‘Manage API Access’ section under GSTIN login. For this, navigate to Login, then select ‘My Profile’ and click on ‘Manage API Access’

• Provide your entity’s primary GST number or the one on which all borrowings from financiers are undertaken

 Your CCR typically consists of the following information:

• Profile: Details about your company, including name, address, contact information, and the unique DUNS number assigned by CIBIL.

• Identification: Information specific to your report, such as how it was generated, the time of generation, and the generating person, along with a unique report number.

• Types of Credit: Insights into active credit accounts (like loans and overdraft facilities), outstanding amounts, and the total available credit. Lenders use this to assess your business's credit utilisation ratio.

• Report Summary: A concise overview of your credit profile, including the number of loans, outstanding debt, and details about your venture acting as a guarantor for others.

• Being Prepared: Regular checks provide insights into your enterprise's credit health, allowing you to anticipate and navigate potential financial challenges or seize expansion opportunities effectively.

• Access Credit: Monitoring your creditworthiness ensures you understand your standing with financial institutions, enhancing your chances of obtaining credit when needed.

• Improve Promptly: Identifying areas for improvement in advance allows you to address issues promptly, ensuring a healthy credit profile and better loan prospects.

• Prevent Mistakes: Periodic checks help catch and rectify any irregularities or mistakes in your Company Credit Report (CCR), preventing potential obstacles to securing loans in the future.

• Boost Security: Given the critical role of money in business survival, staying informed about your enterprise's financial health ensures better preparedness for unforeseen circumstances and enhances your overall financial security.

 Some of the factors that impact the credit rating of your firm are:

• Credit History Length: A long credit history boosts your chances of having a good credit rating. A long credit history shows timely payments and responsible credit behaviour, providing your enterprise with a favourable risk profile so that lenders happily give you credit.

• Credit Utilisation Ratio: This is the percentage of the credit available to your firm that has been used up. Finance experts say that a credit utilisation ratio of less than or equal to 40% is healthy. A credit utilisation ratio above that might still get you a loan, but of a smaller principal amount, a short loan repayment tenure, or a higher interest rate.

• Repayment History:  If your company has been repaying its credit card bills and loans on time, it will be very easy for your business to secure more credit. Conversely, if your CCR has records of late/delayed payments or defaults, the lender might reject your credit application.

• Outstanding Debts: Another major factor that affects your credit rating is the total amount you are yet to repay. A low outstanding balance can work in your favour when your business applies for new credit and vice versa.

• Age and Size of Your Company: If you have been running a business for several years and have been honouring your credit obligations, your business will be instantly viewed as a creditworthy entity. However, startups lack an extensive credit history that can depict their credit behaviour.

• Industry: The overall outlook of the industry that your business is a part of is considered while ascertaining the loan repayment capability of your firm, along with variables such as competition, seasonality, strengths, weaknesses, opportunities, threats, etc.

You can improve your company credit report in the following ways:

• Pay off business loans and corporate credit card bills on time. Additionally, partially or fully prepay the loan amount as and when possible

• Maintain a low credit utilisation ratio (40% or under)

• Keep the old credit cards issued to your firm handy until expiry

• Improve the profitability of your firm

• Check your CCR frequently and keep an eye out for any inconsistencies, misprints, or potential acts of fraud. If you find anything suspicious, report it to CIBIL or the concerned lender immediately

In case of incorrect information or unauthorised activity recorded in the report, you can file your complaints with TransUnion CIBIL. You can file a dispute in any of the following cases:

• Incorrect company and account details

• The credit accounts mentioned in the report are not owned by your company

• Duplicate records of the same account in the report
  
  

You can raise disputes/grievances in case of any faults/misreporting in your reports through TransUnion CIBIL’s grievance redressal process. You can also send your complaints via post on the following address:

 

TransUnion CIBIL Limited,

19th Floor, Tower 2A and 2B, One World Centre,

841, Jupiter Textile Mill Compound, Senapati Bapat Marg,

Elphinstone Road, Mumbai

Maharashtra 400 013