Crucial aspects of a commercial Cibil report?

Just like individuals have credit reports, firms and companies too have commercial Cibil reports that reflect the creditworthiness of a business, the owner of which may have applied for a loan. This elaborate report is released by Credit Information Bureau (India) Limited (Cibil) representing the financial health of a firm/company/organisation concerning the information received from the banks, lenders and other financial institutions. The report helps the lenders determine the payback potential of the firms/ companies.     

Also known as Cibil Company Credit Report (CCR), the report holds vital information about the credit of companies. These reports hold multidimensional credit file information for lenders on their potential commercial borrowers, like their credit histories, etc., so that they can make better lending decisions. These borrowers could include public limited or private limited companies, partnership firms or proprietorships.
Just like the credit scores of individual’s ranges between 300 and 900, cibil ratings contain lower/upper case alphanumerics and symbols. For example, a company could be rated as Aaa or A+ depending upon its performance.

Advantages of strong commercial Cibil report 

High chances of approval: High scores indicate the creditworthiness of a firm to repay the loan during the stipulated term. Hence, lenders consider such firms trustworthy and responsible for financial dealings. Such firms hold high chances of getting loan sanctioned.

Swift and quick disbursal of the loan amount: Firms and organisations with a credit score closer to rank 1 hold better and quick chances of getting their loans approved by lenders compared to those with low scores. Secondly, the loan is easily disbursed into the account of the borrower without any delay.

Low-interest rates: A good credit score is something to feel good about. The borrower has a better chance of convincing the lender to lower the interest rate if he has a good score. This is because his commercial Cibil report speaks volumes about their responsible financial habit and is an assurance to the lender that the loan amount will be paid back. Lenders too prefer to lower the interest rates instead of investing in newer clients or those with low credit scores.

Upper hand while negotiating terms: Prospective borrowing companies with good a credit report are pampered by lenders. Such companies have the privilege to negotiate on the best deal on loan, tenure, higher loan limits, etc., with the lender.  

So, now that you have a better idea of what are good credit scores for your company and how they matter in bringing about the best deals for your firm, dig into your heels and get your scores right.

Log on to https://civilscores.com/civil-score-calculation for more on the topic.