CIBIL Rank and Company Credit Reports are two things interlinked with each other. For a successful business and long-term sustainability, you must always focus on these two aspects of managing your business credit line. So let’s discuss what CIBIL Rank and Company Credit Reports are and how it impacts your business.
What is CIBIL Rank?
CIVIL Rank shows how good your company’s credit report is. CIBIL Rank uses a database of your CCR, and a summarisation of this data is made and converted into a numeric number. CIBIL Rank can be anywhere from 1 to 10. Where 1 symbolizes the highest CIBIL Rank. Companies with credit records of up to 50 crores can quickly get their CIBIL Rank.
Many of us have heard about CIBIL scores. You may think that CIBIL Rank and CIBIL report are the same. But actually, they are not. At the same time, CIBIL Rank is the summarised form of your CCR. At the same time, a CIBIL score is derived from your CIBIL report. A commercial CIBILScore is a 3-digit number starting from 300 to 900. So a good CIBIL score is more than or equal to 700.
What is Company Credit Report?
A company credit report is the compilation of a company’s credit history. In making a Company Credit Report, all the credit information from different financial organizations is accumulated. Therefore, a company credit report or CCR signifies the financial condition of a business institute.
When you apply for a loan for your business, lenders first check your company’s credit report to determine your eligibility criteria for getting that loan. If your CCR is okay, you can quickly get a loan for your business, but people have dire consequences.
How Does CIBIL Rank and Company Credit Report Influence a Business?
CIBIL Rank helps lending organizations evaluate their company’s nature as a borrower. Lending organizations prefer a CIBIL report of 4-1 for considering a financially healthy organization. If your MSME CIBIL Rank is good, you will likely get MSME loan approval quickly. You can even get a lower interest rate. By enjoying a low rate of interest, you can reserve some cash and utilize it in your business growth in the long run.
On the other hand, company credit report or CCRs is interlinked with CIBIL Rank. The good your CIBIL Rank is, the good will be your company’s credit report or CCR. CCR directly implies the credit history of a company. Both CCR and CIBIL Rank are engaged with the financial health of your organizations.
You can improve your CCR by on-time repayments of your credit. Avoid penalties or payment default, and always work on your credit requirement before applying. Before going with a credit, you must consider how much you can repay and how much you need for your business’s smooth functioning. If your credit history is free from payment delays and penalties in repayments, you can surely achieve a good Credit Score for the company.
CreditQ provides a secure platform for business credit management to lenders and borrowers to successfully exchange payments on time. In case of payment fraud, there is an option in CreditQ where you can report the defaulters, and their credit score will go down eventually if your claim has proper documentation support.
They also provide credit information reports of a company where preliminary information related to the financial health of a company is mentioned. This will give you a clear vision of the companies you will do business with. The CreditQ app is web-based, and its user interface is operational from mobile and computer. So, anybody can use this app easily from anywhere and constantly look at credit scores and CIBIL reports.