Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

Company CIBIL Report - Meaning & Factors Involved

Published on Sept 26, 2023Updated on May 21, 2024

Company CIBIL Report - Meaning & Factors Involved

A Company CIBIL Report is a consolidated record of a business's credit history, payment behavior, and financial activities. A company's report serves as a vital tool for creditors, lenders, and potential partners to assess the company's financial standing. The Company Cibil Report is created from the data submitted to CIBIL by lending institutions across India. The past payment behavior of a company is a strong indication of its future behavior. It is therefore important to understand that the company CIBIL report is heavily relied on by loan providers to evaluate and approve loan applications. The article below talks about the meaning and factors involved when it comes to a CIBIL report.

What Are The Components Of A Company CIBIL Report?

Your Company CIBIL report will typically consist of the following bits of information:

Profile:

This section contains details such as the name of your company, its address, and contact details. Additionally, it also contains a unique number that has been assigned to your company by CIBIL, which is also known as the DUNS number.

CIBIL Rank:

This section mentions the company's CIBIL rank ranging between 1-10; the closer a company’s rank is to 1, the better its credit ranking is, making the company highly reliable as a candidate for a loan, and vice versa.

Types Of Credit:

This section contains details such as the type of credit accounts that are active in the name of your venture (such as loans and overdraft facilities availed, if any), the outstanding amount(s), as well as the total available credit of your establishment. This section will be analyzed by the lender to determine the credit utilization ratio of your business.

Report Summary:

As the name suggests, this section is a summary of your credit profile. This part of the CCR has information regarding the number of loans your company has taken, the outstanding debt, etc.

Must Read: How To Correct Your CIBIL Report Mistakes

Factors Involved in a Company CIBIL Report:

The Company CIBIL Report is a comprehensive compilation of several critical factors that provide insights into a company's financial health:

1. Credit Score:

The company CIBIL score is a numerical representation of its creditworthiness. A higher score indicates a better financial track record and increases the likelihood of obtaining credit.

2. Credit History:

The report includes details of the company's past and ongoing credit relationships, showcasing its borrowing behavior, repayment patterns, and outstanding dues.

3. Credit Utilization:

This factor indicates how much of the available credit the company is currently using. Lower credit utilization is often viewed positively by lenders.

4. Payment History:

Timely payments and consistent repayment of credit obligations contribute to a positive payment history, enhancing the company's credibility.

5. Credit Inquiries:

The report lists inquiries made by lenders when the company applies for credit. Multiple inquiries within a short period might raise concerns about credit desperation.

Must Read: What is ECN Number in CIBIL Report & How to Get It?

How to Check Company CIBIL Score:

To check and access a Company CIBIL Report, follow these steps:

  1. Access the official CIBIL website.
  2. Complete the detailed request form, which asks for information such as the company's legal constitution and registered address, along with the applicant's name and address when requesting the CCR. Additionally, include contact details for both the company and the applicant, PAN and related particulars, details of enclosed documents, and supplementary information.
  3. Select your preferred plan (for 1, 6, or 12 months) and pay the requested amount.
  4. After the payment, CIBIL will allocate a registration ID and transaction ID, which will be sent to your email ID. You can use these IDs to move on to the next step.
  5. To complete the process, upload your KYC documents.

After you complete the above five steps, the CCR and CIBIL Rank will be sent to you at the earliest. In case you choose to purchase your CCR and CIBIL Rank through a Demand Draft (DD), you can do so by downloading the request form and mailing it to the TransUnion CIBIL Limited address.

Must Read: What is Days Past Due (DPD) in CIBIL Report?

Conclusion

A Company CIBIL Report is a valuable tool that offers a comprehensive record of a company's creditworthiness. By analyzing factors such as credit history, payment behavior, and credit utilization, this report assists businesses, lenders, and stakeholders in making informed decisions.

SMFG India Credit provides financing options for your business needs, Whether you want a loan of INR 50,000 or up to INR 75,00,000*, we have got you covered. With flexible tenures spanning from 12 to 48 months, we offer convenient repayment options that suit your preferences.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

FAQs

How can I get my company CIBIL report for free?

You can't get your company CIBIL report for free, but you can request it from the official CIBIL website by paying a fee.

Does a company have a CIBIL score?

Yes, companies have CIBIL scores, which are numerical representations of their creditworthiness based on their credit history and financial behavior.

How does a company get a credit score?

A company gets a credit score through its credit history, which includes factors like borrowing behavior, repayment patterns, outstanding dues, and credit utilization.

How can I update the Company Credit Report, CIBIL Rank and GST Report?

To update the Company Credit Report (CCR), CIBIL Rank, and GST Report, you need to contact CIBIL and follow their process for reporting and updating information.

How to Get Your CIBIL Company Credit Report (CCR)?

To get your CIBIL Company Credit Report (CCR), visit the official CIBIL website, fill out the request form, pay the fee, and provide the required documentation. CIBIL will then send you the report.

How is CIBIL score calculated by the company?

The CIBIL score for a company is calculated based on its credit history, payment behavior, credit utilization, and other factors.

Read More Read Less

Was this helpful?

Yesyes vote
Nono vote
Sorry about that
How can we improve it:
Submit