If you want to know your CIBIL score calculation, you can do so on the CIBIL website. But if you run a firm, you should keep in mind that the rules are not the same. CIBIL makes a credit report. Firms and corporations that want to borrow money can get these kinds of credit reports. CIBIL reports can also be made for a single person.
Visit the official site if you want to know how to get a commercial CIBIL report. There are many websites where CIBIL grade reports can be easily created. You need to go to their website and follow the steps. Read the article to learn how to get a commercial CIBIL report with this step-by-step guide.
What is a Commercial CIBIL Report?
A firm’s financial health is noted in a CIBIL Commercial Report (CCR). A commercial CIBIL report analyses a company’s financial health based on information from banks and other financial institutions. Most of the time, this thorough investigation is used to figure out if a business is creditworthy. It is needed to get a loan for a business.
Elements of a Commercial CIBIL Report
A commercial CIBIL report has the following details:
- Background of the Company
Detailed information about the firm’s past is available, such as its legal structure, subsidiaries, owners, and number of years in business.
- Financial Data
The company’s financial data include all of its cash activities. It will also have a list of investments, gains, and losses. All of these go into the CIBIL score. When figuring out the CIBIL score, all financial information is very important. The company will also need this CIBIL score if it wants to borrow money or invest.
- Financial History
The company’s economic history includes information about repayments, collections, income, etc. In addition to these important things, the CIBIL rank is also important.
How to Obtain a Commercial CIBIL Report for a Company
Here are the steps that you need to follow for your CIBIL score calculation:
Step 1: Go to the CIBIL website.
Step 2: Fill out the application form with all the information. It has the applicant’s name and the address where they are registered. The applicant’s contact information and other official documents must also be filled in.
Step 3: Choose how you want to pay and pay the Rs. 3,000 subscription fee.
Step 4: You’d get a registration and transaction ID if your payment went through. Your email address will get this.
Step 5: You’ll be asked to upload your KYC documents.
After you send in your application and review it, you will get your CCR and CIBIL scores. In seven days, it will be sent to the address you gave.
Several people who own businesses have done this. They could have gotten their CIBIL scores in less time than that. It’s not hard to figure out your CIBIL score. You just have to do what the steps say.
Importance of a Commercial CIBIL Report
- Credit History
The length of a firm’s credit history greatly affects its CCR. The longer your credit history, the better it is for your business report.
- Credit-to-Debt Ratio
The praise-to-debt ratio shows how much a company is using its credit. A higher credit utilisation means a business spends its borrowed money faster than expected. Your CCR might go down because of this.
- Previous Experience
Your business needs operating cash to pay for the costs of running a business. This money comes from loans that have to be paid back in EMIs. It is a good financial choice when EMI payments are made on time.
- External Debts
External debts are important. This is mostly because the credit score is affected by the amount owed, external deficits, and the total number of obligations. So, it’s important to keep the number of exceptional cases manageable.
In an organisation’s profile, you can find out about its size and history. People tend to trust older and bigger businesses more than new ones. The main reason is that they have a solid and well-established financial account. Most of the time, their CIBIL score is better.
- Industry Sector
There are more risks in some industries, which affects the CCR. For example, you will be less creditworthy if you work in the oil and gas business. But if you work in a stable field like banking or insurance, it will be good for you. Usually, it’s different from one industry to the next.
How to Make Your Commercial CIBIL Report Better
There are many ways to improve your CIBIL score calculation. Here are some of them:
- You should not forget to pay your EMIs on time. Whether a personal or business loan, you should always pay back the total amount by the due date. Over time, this will help your CIBIL score calculation.
- Pay the debt on your business or corporate credit card on time since any outstanding debt can hurt your CCR.
- Ensure your business’s transactions and credit card statements are up-to-date. Also, look at the reports the banks send you before you clear your payments. Banks and other places that lend money often make mistakes. Keep up with what’s going on and fix any errors right away.
- Pay attention to how much money is coming into and going out of the business. You should be aware of everything that is going on. It is the best way to find out how much money you can borrow. This will give you a good idea of how much money a bank might lend you.
- Borrow money for a long time and pay it back on time. This will help the company look good in the eyes of the bank.
A commercial CIBIL report is important because almost all lenders will check your CIBIL score before giving you a loan. The information gives a true picture of the business borrower’s credit history and lets a potential lender know how the business borrower handles money. Hence, commercial CIBIL helps figure out if someone is a good borrower.
Visit Piramal Finance’s website to avail of a consultation for your CIBIL score calculation or to read more blogs on a variety of wide-ranging financial products and services, such as credit scores, credit cards, and business and personal loans.
Also Read: How Can I Check My CIBIL Score for Free?