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Commercial Credit Report Improvement

A Good Credit MSME Rank is a key step to better business loan

What is Commercial Credit Report ?

Credit Commercial Report is a report card of MSMEs of credit history and credit behavior while CMR (Credit MSMS Rating) is rank between 1-10 where rating 1 is the best and 10 is the Worst. Credit Commercial Credit Report (CCR) is prepared by Transunion Credit. Commercial Credit Report is highly usable and actionable which provides a detailed insight into a business entity to whom Bank is lending.

What is a Credit Rank?

Credit Rank is equivalent to the Credit score given to individuals, provided to commercial organizations. It sums up the complete Company Credit Report (CCR) on a scale of 1 to 10 in one digit. Basically, the credit rank shows the chance of default payments. Therefore lower the ranking, the more likely a loan is. Therefore, 1 is the highest possible ranking. It should be remembered, however, that a credit rank is not allocated to all firms. The credit rank is applicable to only companies with loan exposure of 10 lakh to 50 crores.

What information is Included in a Commercial Credit Report

  • Company background
    Include background information on the company, such as the legal establishment, branches, ownership, and operating years.

  • Financial information
    Financial data that decide the company’s credit standards.

  • Financial history
    Finance info, including payments, collections, income production, and more relevant to the financial history of the company. Besides these, the Credit rank is also essential. A rank of Credit resembles a score of Credit. It numerically summarises the company’s CCR. Just like the score of Credit is between 300 and 900, a CCR ranges from 1 to 10, where 1 is the best possible. Only businesses with Rs.10 lakh credit exposure to Rs.50 crores are granted this designation. When you get closer to 1 the higher your chances are for a business loan to be secured.

Credit Score vs Credit Rank

Companies also apply for loans to run and expand their business and as the process of loan approval Banks and lenders generate Commercial Credit Reports from Transunion Credit and other Credit Bureus to check the creditworthiness of a borrower.

Below is the comparison and difference individual Credit Score and Credit Rank to have a better understanding of both. Individual Credit Score Three-digit figure between 300 and 900 Credit Score more or equal to 750- Great Chances of loan approval Summary of past and present loan track record For Companies and Firms Ranking ranges between 1 to 10 1 is the best and 10 is the worst rank Summary of track record of Company/ firm past and current loan

Credit ScoreCredit Rank
For IndividualsFor Companies(Prop,Partnership,Pvt Ltd etc)
Three-digit figure between 300 and 900Ranking ranges between 1 to 10
Credit Score more or equal to 750-, Great Chances of loan approvalCloser to 1 – higher the chances of loan approval
Summary of past and present loan track recordSummary of track record of Company/ firm past and current loan

How to Read Commercial Credit?

Commercial Credit Information Report contains detailed information about a business entity which may be Proprietorship, Partnership, LLP., Private Ltd, or a Public limited firm.

Following are the different sections covered in a Commercial Credit Report

  1. Identification: It is present at the top and contains Report Order Number, which indicates the number of times your report has been accessed from Credit’s database.

  2. Enquiry Information: This section specifies the name of the company, an identification code, and address.

  3. Borrower Profile: It is further divided into 4 sub-sections:

    • Borrower Details: It includes company name, legal constitution, class of activity, etc.

    • Address and Contact Details: It includes the registered office address, phone number, etc.

    • Identification Details: It includes the company’s PAN, company registration number, etc.

    • Delinquencies Reported on the Borrower: It includes the payment status of the company and the guarantors.

  4. Credit Rank: This section displays your credit rank, which ranges on a scale of 1 to 10. The lower the rank, the better are the chances of getting a loan.

  5. Enquiry Summary: This section displays the list of inquiries done by lenders in the recent past.

  6. Derogatory Information: This section contains information regarding defaults, overdue and dishonored cheques.

  7. Outstanding Balance Details: This section provides an overview of the company’s asset classification with respect to the credit facilities availed.

  8. Location Details: This section mentions additional contact information of the company.

  9. Related Parties Details: It gives information about the related individuals or entities.

  10. Credit Facility Details – As Borrower: This section contains details of the credit facilities availed by the company. It contains credit facility details, payment status, and overdue details.

  11. Credit Facility Details – As Guarantor: This section contains details about the credit facilities guaranteed by the company.

  12. Suit Filed Details: It gives details of suits filed (if any) by any of the previous lenders for the company.

  13. Credit Rating Summary: It contains the latest three credit ratings assigned to the company by an external accredited rating agency.

  14. Enquiry Details (Last 24 Months): This section provides details regarding the inquiries made by lenders for your company’s credit application.

Question answers

See Frequently Asked Question

What is Credit - CCR?

Credit CCR or Credit Commercial Credit Report is a record of companies' past repayment of loans and credit facilities. Information on loan repayment is pulled from the Banks and lenders from where a company has taken loans. Credit CCR is a tool Banks and lenders to determine your creditworthiness and future risk of repayment default.
Credit CCR or Company Credit Report is a record of your credit payment history. This information is pulled from various credit institutions. CCR is used by prospective lenders (banks and other financial institutions) to determine your credit behavior.

What is Credit rank?

Credit rank refers to the summary of your Company Credit Report in the form of one number. It ranges on a scale of 1 to 10.

 

How can I download the Company Credit Report?

You can download the report from the Company Credit Report (Commercial) portal of Credit by submitting some details and paying the requisite fee.

 

Who can access Company Credit Report and Credit rank?

Members of Credit, including Banks, NBFCs and Financial Institutions can access Company Credit Report and Credit Rank.

 

What is the best Credit rank?

The best Credit Rank any company can get is 1 while the worst would be 10.

 

What is Report Order Number in the Company Credit Report?

Report Order Number refers to a unique number generated every time your Company Credit Report is accessed from Credit’s database.

 

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