You know that there is a credit score for an individual but do you have any question in mind then what about business or company? The answer is here. The Company or businesses have CIBIL Rank.
I know you have another question in mind… Am I right? Apoorvaa is giving you answers to all your questions here. The CIBIL rank summarizes your Company Credit Report in the form of one number.
Just as individuals are given a CIBIL Score ranging from 300–900, Companies are assigned CIBIL Rank ranging from 1 to 10 where 1 is best and 10 is worst. However, a CIBIL Rank between 4 and 1 is considered good by most financial institutions.
Most importantly, CIBIL Rank is an indication of a Company’s creditworthiness.
The rank is now available for companies with current credit exposure of up to Rs. 50 crores. Please note that non availability of CIBIL rank is not a negative thing.
The major parameters that are used to calculate the CIBIL Rank are
- a) Past Re–Payment Behavior
- b) Credit Utilization