What is the importance of your company’s credit score for business loans

The credit score of your company for business loans implies credit scores for evaluating a company’s financial health and is part of the main credit information report issued by key credit bureaus in India. Such a credit score is very important for lenders for evaluating the creditworthiness of a company before approving any of their potential loan applications. The company’s credit score can be checked by logging on to the CIBIL™ website or via trusted third-party sites like CreditMantri.

What is Company Credit Score for Business Loans?

• A company credit score refers to a business credit score which helps evaluate a company’s financial health based on the company’s credit history provided by previous lenders to the credit bureau.
• Company credit score is reported as part of its comprehensive credit report generated by key credit bureaus like CIBIL™.
• Lenders make use of the company credit score to evaluate creditworthiness of the company before granting any approval to its loan application.

What is the importance of a good company CIBIL™ score?

Companies get a business credit score (CIBIL™ rank)

• Business credit score is issued by CIBIL™, one of the leading credit bureaus of India.
• CIBIL™ rank is based on a company’s credit history like past loan repayments, timely loan payments, current company loans, type of credit availed, length of credit history etc.
•  CIBIL™ rank is used to reflect the creditworthiness of the company 
• A high CIBIL™ rank increases a company’s chance of getting current loan application or potential loan approved easily
• A low CIBIL™ rank increases a company’s chance of getting loans applications rejected by prospective lenders