Business Credit Report: How to Review It?

Business Credit Report: Introduction

• It is important to have an understanding of your business credit report
• When you review your business credit report, it gives you an insight into your repayment history and financial behaviour with respect to your business.
• It is available in the form of a document that outlines all financial credit related transactions and displays how you have dealt with debt

Information Included in Your Business Credit Report

• You can access your business credit report from any of the 6 major credit bureaus in India. 3 of the most important ones are:

1. TransUnion Credit Information Bureau (India) Limited or CIBIL
2. Experian
3. CRIF Highmark

• Every credit bureau has its own method of creating a business credit report 
• Common information that is captured in the business credit report are:

1. Your personal information
2. Your list of open and closed debt accounts
3. Any credit enquiries that you have made
4. Public records of defaults, bankruptcies, repossessions, foreclosures, judgements on civil suits, liens, etc.

Importance of Your Business Credit Report

• Your business credit report helps to measure your financial reliability, or creditworthiness in an objective way
• Having a good credit score of 750 or more impacts your overall borrowing ability for unsecured instruments
• A history of loan defaults, overdue payments or bankruptcies restricts your borrowing capacity

Getting a Business Loan with a High Business Credit Rating

• You can apply for an unsecured business loan in India from SMFG India Credit with a credit score of 750 and above
• Use the business loan eligibility calculator to check the maximum loan amount that you may qualify for based on a few key parametres
• An 800+ business credit score could help you negotiate preferential business loan interest rates* 
• You may qualify* for pre-approved business loan offers with a positive credit report
• The documents required for a business loan may be minimal with a high business credit rating

Conclusion

• Lenders review your business credit report to help in their decision making process whether to extend any credit to you as a borrower
• So, ensure that you stick to your positive credit rating to enjoy access to all forms of credit at all times

*Loan approvals are subject to various parameters including SMFG India Credit’s policy at the time of loan application.