All You Need to Know About Company Credit Reports

Whenever an individual applies for a loan or a credit card, the first thing that the lender checks is their credit report. This document tells them all they need to know about the person regarding their personal finance, i.e. their past loans, current debt, income details, assets, late payments (if any), etc.

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Just like there is a credit report for every loan borrower, there is a credit report for the businesses too. It’s called a Company Credit Report (CCR) and all the major credit rating agencies such as CIBIL offer it to the banks for them to assess the creditworthiness of a company that has applied for a business loan.

 Why is CCR Important? What Information does it contain?

A CCR plays a big role in the approval process of a business loan. This is because it tells about the creditworthiness of a business by sharing important information in various sections, which are:

Identification

This section mentions the basic details such as the date when the report was generated, the agency by which it was generated, and whether inquiries were made on the report.

Company Profile

In this section of the CCR, the details of the company are given. These include the name of the company, nature of the business, and DUNS which is a unique identification number which CIBIL gives to every business registered with it. (Other agencies may give a different type of identification number).

Credit Details

This is the most important section of the report in which the credit details of the company are shared. These include the loans taken by the company in the past, the types of loans taken, etc.

Any business that needs a loan must pay attention to their CCR. It’s recommended that they check their report every once in a while to take into account their current financial standing and also to identify mistakes in the report if there are any.