Company Credit Report: How to obtain and analyze your business’s credit score | Mint

Company Credit Report (CCR) is a document that provides information about the credit history and financial health of a company. A CCR is a very important device for the lenders, creditors and business companions to assess the creditworthiness and financial stability of a business. For companies looking to maintain a strong position financially and have trust in the business community, an understanding of a CCR’s components and importance is essential.

Components of a company credit report

Credit rank: The numerical representation of a company’s creditworthiness. The higher the rank, the less risky it is to lenders and investors.

Payment history: This section records the company’s record of its debt payment history. It consists of details of timely payments, delays, or defaults. Timely payments help to improve the credit profile while frequent delays or defaults hurt the credit rank.

Outstanding debts: This component contains outstanding debts, such as loans, credit lines and all financial obligations. It tells the company’s current liabilities and how much debt they can take on.

Credit utilisation ratio: A credit utilisation ratio is the ratio of the utilised credit to the total credit. A lower credit utilisation ratio is a sign of better financial management and the credit rank is positively affected by this.

Public records: This includes information like bankruptcies, tax liens, or court judgments. These records can have a huge impact on the company credit worthiness and are closely reviewed by potential lenders and partners.

Steps to get company credit report

Visit the Credit Bureau’s website: Visit the official website of a reputed credit bureau and proceed to the business or company credit report section.

Submit company information: Enter the necessary details, for example, your company name, registration number, and other business credentials.

Choose the desired report type: Choose the type of report you want to receive; Company Credit Report (CCR) along with any other reports like GST Report if you want a more comprehensive financial report.

Complete identity verification: Provide the required identification documents and company records for verification.

Make payment (if applicable):If required, you will have to pay a processing fee for your request to be processed.

Download your report: After your request has been processed, you will have access and then you can download your comprehensive company credit report containing your credit rank and other necessary financial information.

Tips to improve your company credit report

On time repayments: Making timely repayments of loans and credit dues can help you increase the company’s credit score.

Low credit utilisation ratio: To maintain a good financial management, it is advisable to have a low credit utilisation ratio.

Periodic review of CCR: Periodically reviewing the CCR ensures there are no errors or fraudulent activities.

Frequent credit inquiries: Limiting frequent credit applications will help you avoid any negative impact on the credit score.

In conclusion, a credit score is extremely important in maintaining a healthy credit profile through which you can build a strong reputation for your company. Hence, make sure that you repay your debts on time and do not make any defaults in repayments as even a single missed payment can impact your credit score drastically.