Businesses have credit records too. When an MSME applies for a working capital limit, term loan or other facility, lenders typically review the business's Commercial Credit Report (CCR) alongside the personal credit profiles of its promoters, directors or partners.
What is CIBIL Rank?
CIBIL Rank is a rank assigned by TransUnion CIBIL to eligible MSMEs based on their commercial credit information. It is generally expressed on a scale of 1 to 10, where 1 indicates the lowest risk. Other bureaus offer their own business credit assessments.
What lenders look for
- Repayment track record on existing business facilities.
- Overdue amounts and their age.
- Number and type of lenders and facilities.
- Any suit-filed or written-off accounts.
- The credit profiles of key individuals.
Common business-report issues
Closed facilities still shown as active, incorrect sanctioned limits, entries belonging to a similarly named business and outdated overdue amounts are all issues that can be reviewed and, where verified as inaccurate, disputed.
This article is general information, not personalised financial or legal advice.