All You Need to Know About Commercial CIBIL?
A commercial CIBIL report gives a detailed data report on commercial borrowers. A commercial borrower may be a sole proprietor, a partnership, or a private or public firm. It gives the lender an idea about the credit history of the borrower. With the help of a commercial CIBIL report, the banks can make a quick choice about whether to give loans to the applicant or not.
To maintain a good commercial CIBIL report, the borrower has to be very alert. As a borrower, you should not miss any payment due dates. Your commercial CIBIL report is based on the details it gets from sources like banks and other lenders.
A commercial CIBIL report has a vital role in the entire loan-taking process for commercial borrowers. If you want to get a loan, for example, an MSME business loan, most lenders will ask for this report. It will show your reliability, and a good credit ranking may improve the chances of your borrowing request getting approved. With a high credit score, your borrowing options get better. It is to be noted that a high CIBIL score should be maintained to continue proving your credit reliability.
How Can You Get Your Commercial CIBIL Report?
You can get your commercial CIBIL report by following these simple steps:
- Visit the CIBIL website.
- Fill out the form and add the required details, such as your company’s name, GSTN value, ID value, company type, location details, and contact details.
- You will be asked to make an online payment. The amount will be as per your chosen plan.
- After making the payment, you will get your transaction and registration ID through the mail.
- You will have to upload your KYC documents. After the required documents are submitted, you will get your commercial CIBIL report and CIBIL rank delivered to the given address in approximately 7 to 8 days.
CIBIL Rank and CIBIL Score
Like the CIBIL report and CIBIL score that a person has, a commercial borrower has a CIBIL rank and a commercial CIBIL report. Here are the key differences between the two:
|Basis of Distinction||CIBIL Score||CIBIL Rank|
|Summary||It summarises the credit report.||It summarises the commercial CIBIL report.|
|Range||The range is between 300 and 900.||The range is between 1 and 10.|
|When are the chances of approval higher?||When the score is closer to 900, the chances of approval are higher.||When the rank is closer to 1, the chances of approval are higher.|
Components of a Commercial CIBIL Report
The components that a commercial CIBIL report offers to commercial borrowers and lenders are:
- Information: It has all the details of the borrower firms, such as name, date of incorporation, address, company’s PAN, profile, phone number, etc.
- Identification: At the top of the CIBIL report, there is a report order number given, which signifies the number of times the Commercial CIBIL Report of the firm has been accessed.
- CIBIL Rank: A rank from 1 to 10 has been given to the company in this report, which signifies its chances of getting a credit facility.
- Details as a Guarantor or Borrower: The commercial CIBIL report also depicts how many times the firm has taken a loan in the past or has acted as a guarantor. By using this report, banks or NBFCs can decide whether or not to sanction a loan to you.
What Affects Your Commercial CIBIL Report?
Here are a few factors that play a vital role in affecting your commercial CIBIL report:
- History of Past Payments: This is related to your past loans and how you have routinely made the repayments on them. So try not to make any delays while you are repaying your loans.
- Credit History Length: The time since you started taking out loans for your firm is known as your credit history length. Usually, if you have a long credit history and have made timely payments, your CIBIL score will be good.
- Any Ongoing Debts: If you have a lot of loans, it will reflect poorly on your creditworthiness. It will give a hint of bad repayment history.
- Company History: Old companies and large firms usually have an image of growth and stability. This will have a positive impact on your commercial CIBIL report.
- Profits: Your business’ turnover and profit can serve as a direct way to understand your repaying capacity. Also, if you have a high profit, it will easier for you to qualify for MSME business loans and other business loans.
How Can You Make Your CIBIL Report Better?
If you want to keep a good commercial CIBIL report, here are certain things that you should keep in mind:
- All your dues, like loan EMIs, should be paid on time. If you delay it, you will not be able to maintain a solid credit history.
- Keep your credit usage ratio as low as possible. This will help you prove your firm’s credibility.
- Maintain a good credit history that has a long duration.
- If you have any debt to be paid, keep the level of practicality high. This will keep your repayment ability from being questioned.
- The balance between your company’s assets and liabilities should be good.
- Any issues on your credit statement should be resolved as soon as possible.
If your company needs a commercial CIBIL report to apply for MSME business loans and more, this article must have helped you a lot. However, note that CIBIL only offers commercial CIBIL reports to companies and businesses that have borrowings ranging from Rs. 10 lakh to Rs. 50 crore. If your borrowing is not within this range, CIBIL may issue a NA report for your company. This commercial CIBIL report is even more vital as CIBIL members, lenders, banks, and other financial institutions have access to it.
If you want to read more about other finance-related topics, then do visit Piramal Finance. Read more related blogs on the website to explore our financial products and services, especially those on personal loans, credit cards, and financial calculators.
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