Business Credit Reports: How to Read Them


Ever gone through your own Business Credit Report and wondered how to make sense of it? Here we’ve broken down what a Commercial Credit Report (CCR) is and why it’s important.

Now let’s help you understand your CCR just like a lender would before approving or rejecting your business loan application.

Here is a sample CCR for you to look at. Below we discuss the different sections of the report and what information each section contains.


Section 1: Identity and Enquiry Information

Indicates the number of times your report has been accessed and the purpose of your report access from the Experian database.


Section 2: Company Details
  • Borrower Details: It includes company name, legal constitution, category of activity, etc.
  • Address and speak to Details: This mentions your registered workplace address, phone number, etc.
  • Identification Details: It includes the corporate’s PAN, company registration number, etc.


Section 3: Enquiry Summary

This section displays the list of enquiries done by lenders within the recent past.


Section 4: Account Summary
  • As a borrower: Details of the loans availed by your business. It contains loan details, payment status and due details.
  • Credit Facility Details As a Guarantor: This section contains details about the loans guaranteed by your business.
  • Delinquencies Reported on the Borrower: The payment status of your business and the guarantors.
  • Outstanding Balance Details: A summary of your business’ plus classification with the relevant loans availed.


Section 5: Location Details

Any additional contact information of your business.


Section 6: Relationship Details

This gives information about related individuals or entities.


Section 7: Credit Facility Details
  • As Borrower: Details of all loans availed by the company. It contains loan details, payment standing and due details.
  • As Guarantor: This section contains details about the credit facilities secured by the company.


Section 8: Suit Filed Details

It gives details of suits filed (if any) by any of the previous lenders for the company.


Section 9: Enquiry Details

This section provides details concerning the enquiries created by lenders for your business’ credit application in the last 24 months.


All of the sections above come together to help a lender develop an understanding of your business, and we hope you now have a better understanding of why your credit report/score is so important. According to RBI regulation, an Experian score of 750 and above reflects a healthy and creditworthy business. Lenders are more likely to extend credit to you if you are above that score and are even willing to offer you better terms and ROIs if your business is at a higher credit standing!