Company Credit Information Report India

       Building a solid business credit report isn’t only about repaying debts on time-it takes endless time and discipline;                           continuous monitoring; and active corrections. Here’s an action plan that will assist your business in enhancing your lender         readiness and credit future:

1. Make Timeliness the Norm

        Over dues are the biggest indicators of trouble in your company’s Credit report or CRIF business credit report. Just one                  account showing Days Past Due (DPD) can significantly lower your credit rating.

• To get back on track with repayments, clear your overdue accounts as soon as possible.
• Create auto-debit payments for your EMIs and interest repayments to avoid falling behind.
• If you expect to be overdue, reach out to your lenders early, and propose a restructure if necessary

2. Maximize Utilization

         When your credit utilization is high (realizing close to 100% of your authorized limit) it sends signals of distress to lenders.           Ideally, businesses should strive to maintain a level of utilization beneath 65–70%.

• Negotiate pushes to increase (authorized) limits in order to improve your utilization ratio.
• Utilize borrowings across many different facilities, so that you are not solely reliant on one facility that is maxed out.
• Regularly review your working capital cycles and reduce your dependency on overdrafts.

3. Consolidate Short-Tenor Debt

        A mixture of short-term and high-cost borrowings will take their toll on your report. Using informal working capital loans, or          unsecured Overdrafts/ Cash credit, match your cash requirements.

• Replace fragmented loans with structured term facilities or lines of credit with longer tenor terms.
• Incorporate consolidation, where possible, to clean up loan tracking for repayment, and reduce overall borrowing costs.
• While miss-matching is relevant with loans as far as scoring goes, consider refreshing your ratings by maintaining a reasonable mix of secured and unsecured credit.

4. Dispute Errors and Inaccuracies

         Clear errors or stale entries can sure drag down your corporate Credit report, and much of this would seem unfair in your                situation.

• Pay close attention while reviewing your report to determine if there are incorrect accounts being reported on, duplicate entries, loans that were paid and closed, but are still running as active.
• Write the challenge to Equifax, Experian and CRIF High Mark™, with supporting documentation.
• Monitor the status of any challenges and ensure the corrections appear in your updated report.

5. Add Positive Repayment Data

         An incomplete or thin credit file can be just as harmful as a bad one. Adding positive repayment data to your profile will                 improve it.

• Make sure to have your lenders report all your open lines of credit and term loans to the credit bureaus.
• Ask your lenders to report your repayment history in a timely manner.
• Use trade credit references or supplier payments (when allowed) to help bolster your profile.

6. Governance Hygiene

         Lenders and credit bureaus will look at your governance and compliance track record in conjunction with the payments                 record.

• Make sure you file your annual returns, GST returns, and ROC filings before the due date. You do not want to accrue negative marks.
• Make sure your audited financials match what you reported to give the credit bureau —or you will be a red flag.
• Maintain your KYC and company records with your registrars and credit bureaus current.

7. Perform Quarterly Monitoring

         Credit profiles change based on current facilities, repayments, and inquiries. Regular monitoring of your profile gives you a           chance to act before red flags become serious issues.

• Get your credit report from the credit bureau every quarter. This way, you can see changes and where improvements have been made.
• Get subscribed alerts for any new inquiries or negative tags from the credit bureau
• You can prepare a monitoring plan that will give you an early warning system so you can act at the first sign of problems.

     Pro Tip. Enhancing your company’s credit score is not a one-off task. It is a cycle of disciplined repayments, strategic                                   borrowings, compliance, and monitoring. By remaining vigilant and proactive, you will never have to face the stress                        of last-minute surprises when getting loans or during inducting a new vendor.