When you are trying to partner with a new supplier or getting a business loan, the business credit score of your company matters a lot. A good credit score can persuade the banks and suppliers to work with you, while a bad one is a red flag. However, how do banks and other investors know your credit business credit scores? It is where a business credit information bureau comes into the picture.
What is a Business Credit Bureau?
A credit bureau is an organization that collects relevant financial data on an individual or a business entity and analyzes them to identify their creditworthiness. Credit bureaus collect information, including details on timely bill payments, credit card payments, loans, income tax payments, etc.
All that data is compiled from various sources and put together by the agency to determine how well your finances make payments if you take loans or credits.
What Are The Major Credit Bureaus in India?
There are four major credit bureaus in India that provide individual and business credit information. They are:
TransUnion Credit Information Bureau (India) Limited
Also known as CIBIL, it is a comprehensive credit bureau that provides credit information on individuals and businesses. CIBIL gives credit scores ranging between 300 to 850, 850 being the highest. However, a score above 720 is considered good.
Equifax
Another reputable credit bureau started in 1899 and became licensed in 2010. Equifax provides credit scores from 1 to 999, including risk and portfolio scores for individuals. For companies, they offer credit fraud reports, risk management reports, industry diagnoses, and much more.
Experian
Experian is another licensed agency that provides credit reports for businesses and individuals. Experian takes about 20 days to deliver the reports but is cheaper than their counterparts, so you can opt for their reports if you have time on your hands.
CRIF High Mark
CRIF High Mark is the only credit bureau in India that the RBI approves to operate in India. CRIF High Mark also provides credit ratings for both companies and individuals.
How Accurate Are The Credit Reports?
The accuracy of the crest reports provided by any organization depends entirely on the accuracy of the data provided. If you have given incorrect or outdated information anywhere regarding your financial status or other relevant information, your credit score can be impacted.
How To Maintain a Good Business Credit Score?
One of the easiest ways to maintain a good credit score is to pay your bills and loans on time without any delays. You can also keep a good debit credit ratio in your business to ensure a good credit score. Paying your taxes correctly on time also helps.
About Us
CreditQ is an innovative credit management platform designed for MSMEs in India like CIMSME India. We offer innovative B2B solutions for small and medium-sized businesses to manage their credit. With our platform, you can report payment defaulters and also check business credit scores for your suppliers and vendors.
