CIBIL Consumer Relations | 16 Jul, 2013
A
good credit history plays a crucial role in determining the ability
of a business to borrow money. Lenders today check the Company
Credit Report (CCR) while determining the credit worthiness of
companies. Companies include not only Private &
Public limited firms but also Partnerships, Trusts, HUF and Self Help
Groups etc. CIBIL maintains the
credit information of these various entities submitted to it by its
members (Banks and financial institutions) across credit products.
The credit products included are Cash Credit, Overdraft, Export bills
purchased/discounted/advanced against, Derivatives, Business loan
etc. Basis this credit information a Company
Credit Report (CCR) is generated
Uses of a CCR:
The advantages of
accessing your Company's Credit Report are many fold:
-
While applying
for a loan- If you have a
business enterprise of your own and are looking to expand further
the scale of operations, then this may require additional financing.
This is when the importance of the CCR is significant. As a record
of your company's credit history, this report is used by Credit
Institutions to make informed lending decisions-quickly and
objectively. Therefore, a CCR plays a crucial role in the loan
approval process. By accessing your CCR you can better understand
your financial standing.
-
Builds
reputational collateral with business partners- Your Company's
Credit Report acts as an indicator of your company's financial
strength. It can help you negotiate better credit terms while doing
business.
-
Re-evaluate the
existing trade credit practice- Ask your business partners to
build reputational collateral with you and share their Company
Credit Report with you. This would give you an understanding of your
potential business partner's creditworthiness. Allowing you to
periodically re-evaluate the trade credit you provide.
Understanding CCR:
You can check your company's credit
health by accessing the CCR for Rs 2560/- by simply logging on to
www.cibil.com , completing the
online request form and uploading your company's KYC details.
Important sections in your CCR:
-
Credit Facility details: In this
section you can locate the details of the credit facilities availed
by your company and the repayment pattern.
-
Guarantor details: This section
provides details of the business entity/individual that has -
guaranteed the particular credit facility (if any) availed by your
company.
-
Credit facilities guaranteed: This
section details out the credit facilities that have been guaranteed
by your company. Since your company is the guarantor, it is also
your responsibility that the concerned business entity honors their
credit obligation, else your company will be liable to pay.
-
Enquiry details: This section
contains the details of all the enquiries, i.e., the number of times
your company's credit information has been requested by the member
(Banks and Financial Institutions) from CIBIL over a period of last
2 years.
-
Suit Filed Account(s) of the
Borrower - Details of any suit filed against your company are
captured here.
