Company Credit Report: A Guide to its Meaning and Value

In a business environment, finance management is necessary to ensure creditworthiness and economic stability. Just like a credit report assesses personal financial health, a Company Credit Report (CCR) helps businesses evaluate their financial position. This report determines your company’s creditworthiness and eligibility for new credit. 

Compiled by credit institutions like CIBIL, this document uses data from banks and NBFCs that your company has accounts with or has taken credit from. The CCR provides a comprehensive financial assessment, which you can refer to as a CIBIL report for a company. It serves as a crucial tool for loan sanctioning and helps a business maintain financial health. 

​​​About Company Credit Report 

A company credit report is similar to a general credit report, which describes the financial health of a business or company. This information is retrieved from credit institutions like CIBIL and estimates if your business is creditworthy and eligible for loans.  

This report is necessary for MSME loan approval and a bank or NBFC may check it before giving you a green flag on the loan application. This document details your company’s background, the CIBIL rank between 1 to 10 and finance data. Whether you are a micro, small or medium enterprise, this document will help you get insights into your financial position. 

​​​Key Components of a Company Credit Report (CCR) 

The CCR is based on some key components credit institutions use to assess your creditworthiness and financial position. These include credit history, ranking and debts. Some key components used are listed here. 

Credit Rank 

The CIBIL rank ranges from 1 to 10 and is assessed through your company’s financial history. A score closer to 1 determines excellent credit health. However, a CIBIL rank close to 10 is not deemed creditworthy. 

Payment History 

This includes a brief detail of the company’s history related to repayment, revenue, collections, cash flow, loans, etc. The report takes into consideration timely repayment of credit or defaults and lapses.  

Debts 

Debts determine the total amount of money you owe in the form of a loans. The total amount you owe to the creditors or financial lenders that is currently due determines if you are eligible for fresh credit or not. 

Credit Utilisation 

The ratio to the total credit sanctioned compared to the credit you have used is the total utilisation ratio. For instance, if you have used 60% of the amount provided to you as a business loan, the credit utilisation is high. It can impact your creditworthiness for upcoming financial products.  

Public Records  

If there are any financial or legal issues connected to your firm, your creditworthiness may be affected. It is advisable to resolve legal matters as soon as possible as this may be included into your CCR.  

​​​Steps to Check and Download Your Company Credit Report  

To get your company’s financial assessment document from institutions like CIBIL, you can opt for an online process. If you are wondering how to check the company CIBIL score, you can log in to the official website or follow the steps below: 

1. Visit the official CIBIL website
2. Enter your company details such as name, registration details or business credentials 
3. Choose the report you want to download (other than CCR, you can also get GST reports) 
4. Provide the company’s identification documents 
5. To download the complete report, you might have to pay a fee 
6. Complete the payment and download the report 

Also Read: Importance of Your CIBIL Score 

​​​Factors that Affect Your Company Credit Report 

Some factors like a longer credit history and timely repayment mark you as a responsible business. Some of these factors are listed below: 

• If your repayments are timely, your payment history will look excellent. 
• If the credit utilisation ratio is high, your company credit report may restrict your eligibility and creditworthiness. 
• If the bank or NBFC encounters legal issues as public records in your report, your creditworthiness will go down. 
• If your company’s credit report is lengthy, you will be considered highly eligible (the shorter the credit history length is, the more doubtful the lender will be regarding your borrowing behaviour). 
• Compared to new firms, older organisations tend to have higher credit scores as a longer business vintage points to greater experience. 

Tips for Improving Your Company Credit Report  

Some crucial factors such as credit history length and credit rank determine your company’s financial status. To ensure that your report is excellent and you are eligible for new credit, here are some tips to follow: 

• Timely payments of loans or credit cards is essential
• Keep an eye on the company’s credit report to make improvements gradually 
• Depict a healthy credit mix of business loans, credit cards and trade credit 
• Manage your debts well using revenue to repay loans while keeping the company profitable 
• Limit the number of loan applications you make 

As you work towards building creditworthiness as a business, consider different options to access capital. You can opt for the Fibe Loan Against Mutual Funds and use your investment to get instant liquidity.  

Depending on the type of mutual fund you hold, you can receive up to 80% of the value with 0 asset liquidation. With quick disbursal and a loan of up to ₹10 Lakhs, Fibe gives you a smart solution for your business needs. Apply today with Fibe as the application process is online and comes with no foreclosure charges. 

FAQs on Company Credit Reports 

​​​How can I check my GST Report as a part of my Company Credit Report? 

To check your GST Report as a part of my Company Credit Report, you must navigate to the official CIBL website. Fill out the company credentials and choose the report you want to download. Complete the fee payment and get access to the report.  

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

You cannot update the Company Credit Report, CIBIL Rank and GST Report. However, you can improve it through tips like improving credit utilisation, clearing debts, timely repayment, etc.  

​​​Why do companies need credit reports? 

Companies and businesses require a credit report to assess and depict themselves as creditworthy. It helps banks and NBFCs provide them with loans and other financial assistance.  

What is a company credit report? 

A company credit report provides information about a business’s detailed past related to credit dealings and its credit rank. It helps lenders assess the business’s creditworthiness and provide them with affordable credit.