Business

What is Commercial CIBIL Score and How Does it Affect Your Business?

Published

2 years ago

April 12, 2023

alokcomosft

Introduction

Definition of Commercial CIBIL Score
Importance of maintaining a good commercial CIBIL score
Purpose of the article

What is Commercial CIBIL Score?

Explanation of Commercial CIBIL Score
Difference between Personal and Commercial CIBIL Score
Factors that determine Commercial CIBIL Score

Importance of Commercial CIBIL Score

How lenders use Commercial CIBIL Score
Importance of Commercial CIBIL Score for businesses
Factors that affect Commercial CIBIL Score

Benefits of a Good Commercial CIBIL Score

Favorable Loan Terms
Access to More Financing Options
Competitive Interest Rates

Consequences of a Poor Commercial CIBIL Score

Difficulty in getting loans
Higher interest rates
Unfavorable loan terms

How to Improve Your Commercial CIBIL Score

Steps to improve Commercial CIBIL Score
How long it takes to improve Commercial CIBIL Score
How to maintain a good Commercial CIBIL Score

Conclusion

Recap of key points
Importance of maintaining a good Commercial CIBIL Score

Introduction

As a business owner, it’s important to understand your company’s creditworthiness and how it affects your ability to obtain financing. One of the critical factors that determine a business’s creditworthiness is its Commercial CIBIL Score. In this article, we will explain what Commercial CIBIL Score is, how it affects your business, and what you can do to maintain a good Commercial CIBIL Score.

What is Commercial CIBIL Score?

Commercial CIBIL Score is a three-digit number that represents the creditworthiness of a business. It is a crucial factor that lenders consider when evaluating loan applications from businesses. A good Commercial CIBIL Score indicates that the business is financially responsible and is likely to repay the loan on time. On the other hand, a poor Commercial CIBIL Score can make it difficult for a business to secure funding.

Unlike a personal CIBIL Score, which ranges from 300 to 900, the Commercial CIBIL Score has a different range. The Commercial CIBIL Score ranges from 1 to 5, with 1 being the highest score possible. A score of 1 indicates that the business has an excellent credit history, while a score of 5 indicates that the business has a poor credit history.

Factors that Determine Commercial CIBIL Score

Several factors determine a business’s Commercial CIBIL Score, including payment history, credit utilization, credit mix, and length of credit history. Payment history and credit utilization are the most significant factors that impact the score.

Payment History: The payment history includes information on the payment of the business’s outstanding debts. Late payments, missed payments, or default on loans will negatively impact the Commercial CIBIL Score.

Credit Utilization: Credit utilization is the ratio of the business’s credit balance to its credit limit. Lenders prefer businesses that use less than 30% of their available credit limit.

Credit Mix: Credit mix is the variety of credit accounts a business has, such as loans, credit cards, and lines of credit. A mix of different types of credit accounts can positively impact the Commercial CIBIL Score.

Length of Credit History: The length of credit history is the age of the business’s oldest credit account. A long credit history can positively impact the Commercial CIBIL Score.

Importance of Commercial CIBIL Score

How Lenders Use Commercial CIBIL Score

Lenders use Commercial CIBIL Score to determine the creditworthiness of a business. A high Commercial CIBIL Score indicates that the business is financially responsible and is likely to repay the loan on time. Lenders prefer to lend to businesses with good Commercial CIBIL Scores, as it reduces the risk of default.

When a business applies for a loan, lenders evaluate the Commercial CIBIL Score along with other factors like the business’s revenue, profitability, and cash flow. If the Commercial CIBIL Score is high, the lender is likely to approve the loan application and offer favorable loan terms, such as a low-interest rate, longer repayment period, or higher loan amount.

On the other hand, if the Commercial CIBIL Score is low, the lender may reject the loan application or offer unfavorable loan terms, such as a high-interest rate, shorter repayment period, or lower loan amount. A low Commercial CIBIL Score indicates that the business has a history of late payments, missed payments, or default on loans, which increases the risk of default.

Importance of Commercial CIBIL Score for Businesses

Maintaining a good Commercial CIBIL Score is critical for businesses, as it affects their ability to obtain financing. A good Commercial CIBIL Score opens up more financing options and ensures that businesses can access funding when needed. It also enables businesses to negotiate favorable loan terms and get competitive interest rates.

A good Commercial CIBIL Score also signals that the business is financially responsible and has a good credit history. This reputation can help businesses build trust with lenders, suppliers, and customers, which can lead to more business opportunities and growth.

Factors that Affect Commercial CIBIL Score

Several factors can affect a business’s Commercial CIBIL Score, including late payments, missed payments, default on loans, high credit utilization, and recent credit inquiries. These factors can negatively impact the Commercial CIBIL Score and make it difficult for businesses to obtain financing.

Late Payments and Missed Payments: Late payments and missed payments can have a significant impact on the Commercial CIBIL Score. Late payments stay on the business’s credit report for up to seven years and can reduce the Commercial CIBIL Score by several points.

Default on Loans: Defaulting on a loan can severely damage the Commercial CIBIL Score. Defaulted loans stay on the business’s credit report for up to seven years and can reduce the Commercial CIBIL Score by several points.

High Credit Utilization: High credit utilization can negatively impact the Commercial CIBIL Score. Lenders prefer businesses that use less than 30% of their available credit limit.

Recent Credit Inquiries: Recent credit inquiries can negatively impact the Commercial CIBIL Score. Lenders may view multiple credit inquiries as a sign of financial distress and may be hesitant to lend to businesses with a high number of credit inquiries.

Benefits of a Good Commercial CIBIL Score

Maintaining a good Commercial CIBIL Score can provide several benefits to businesses, including favorable loan terms, access to more financing options, and competitive interest rates.

Favorable Loan Terms: A good Commercial CIBIL Score enables businesses to negotiate favorable loan terms, such as a low-interest rate, longer repayment period, or higher loan amount.

Access to More Financing Options: Maintaining a good Commercial CIBIL Score opens up more financing options for businesses. Lenders prefer to lend to businesses with good Commercial CIBIL Scores, which increases the chances of getting approved for a loan.

Competitive Interest Rates: A good Commercial CIBIL Score ensures that businesses can get competitive interest rates on their loans. This can save businesses a significant amount of money in interest payments over the life of the loan.

Consequences of a Poor Commercial CIBIL Score

A poor Commercial CIBIL Score can have several consequences for businesses, including difficulty in obtaining financing, higher interest rates, and unfavorable loan terms.

Difficulty in Obtaining Financing: Businesses with poor Commercial CIBIL Scores may find it challenging to obtain financing. Lenders may be hesitant to lend to businesses with a history of late payments, missed payments, or default on loans, as it increases the risk of default.

Higher Interest Rates: A poor Commercial CIBIL Score can result in higher interest rates on loans. Lenders charge higher interest rates to businesses with poor credit scores to compensate for the increased risk of default.

Unfavorable Loan Terms: Businesses with poor Commercial CIBIL Scores may be offered unfavorable loan terms, such as a shorter repayment period, lower loan amount, or higher collateral requirements.

How to Improve Commercial CIBIL Score

Businesses can take several steps to improve their Commercial CIBIL Scores, including making timely payments, keeping credit utilization low, monitoring credit reports regularly, and resolving any errors or disputes in the credit report.

Making Timely Payments: Making timely payments on loans and credit cards is essential for maintaining a good Commercial CIBIL Score. Late payments and missed payments can have a significant impact on the Commercial CIBIL Score and can stay on the credit report for up to seven years.

Keeping Credit Utilization Low: Businesses should aim to use less than 30% of their available credit limit to maintain a good Commercial CIBIL Score. High credit utilization can negatively impact the Commercial CIBIL Score and can make it difficult to obtain financing.

Monitoring Credit Reports Regularly: Businesses should monitor their credit reports regularly to ensure that all the information is accurate and up-to-date. Any errors or disputes in the credit report should be resolved immediately to avoid any negative impact on the Commercial CIBIL Score.

Conclusion

In conclusion, the Commercial CIBIL Score is an essential factor that lenders use to evaluate the creditworthiness of businesses. Maintaining a good Commercial CIBIL Score is critical for businesses to access financing when needed, negotiate favorable loan terms, and get competitive interest rates. Factors that can negatively impact the Commercial CIBIL Score include late payments, missed payments, default on loans, high credit utilization, and recent credit inquiries. Businesses can improve their Commercial CIBIL Scores by making timely payments, keeping credit utilization low, monitoring credit reports regularly, and resolving any errors or disputes in the credit report. By maintaining a good Commercial CIBIL Score, businesses can build trust with lenders, suppliers, and customers, and open up more opportunities for growth and success.

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Business

Australia’s Coles misses profit estimates on higher costs, low tobacco sales

Published

8 hours ago

August 26, 2025

Andrew Ross Sorkin

Coles Lags Behind: High Costs and Slipping Tobacco Sales Hit Profits

What’s Happening?

Coles Group, Australia’s leading supermarket chain, reported its annual profit fell short of projections. The disappointing results were attributed to rising operational costs and a decline in tobacco sales, impacting its high-performing Supermarkets division. As the new business year gets underway, the company anticipates continued challenges.

Where Is It Happening?

The financial results impact Coles’ operations across Australia, with implications for customers nationwide.

When Did It Take Place?

The disappointing financial performance was announced on August 26, summarizing the fiscal year just concluded.

How Is It Unfolding?

– Rising operational costs have squeezed profit margins across the board.
– Tobacco sales, a traditionally strong revenue driver, have seen a notable decline.
– The Supermarkets division, usually a financial leader, now faces slower growth.
– Shoppers are adapting to protective measures, like plexiglass dividers at checkouts.

Quick Breakdown

– Coles Group’s profit fell below market expectations.
– Higher costs and weaker tobacco sales contributed to the drop.
– TheSupermarkets division is growing at a slower-than-expected rate.
– The company expects ongoing challenges in the new fiscal year.

Key Takeaways

Coles Group is feeling the pinch from rising expenses and shifting consumer habits, particularly in tobacco sales. The retail giant’s Supermarkets division, typically a steady performer, is now facing hurdles that could impact its future growth. As costs continue to climb and traditional revenue streams diminish, Coles may need to explore new strategies to keep up with changing market demands.

It’s like trying to balance a budget while your biggest income source dries up—quick adjustments are needed to avoid falling behind.

It’s a wake-up call for the industry. Retailers must innovate or risk falling behind in a rapidly changing market.
– John Davis, Retail Analytics Expert

Final Thought

Coles Group’s struggle to meet profit expectations highlights the broader challenges at play in retail today. Higher costs and shifting consumer habits force companies to adapt quickly. As tobacco sales decline, Coles must find new ways to drive revenue and maintain profitability. The road ahead may be tough, but strategic shifts could help the supermarket giant bounce back.

Source & Credit: https://www.reuters.com/world/asia-pacific/australias-coles-misses-profit-estimates-higher-costs-low-tobacco-sales-2025-08-25/

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Business

Warming Seas Worsen Japan’s Price Shock With $120 Urchin Rice Bowls

Published

8 hours ago

August 26, 2025

Andrew Ross Sorkin

Sea Urchin Shortage Hits Japan as Warming Oceans Drive Up Prices

What’s Happening?

Japan is grappling with a severe sea urchin shortage as soaring ocean temperatures devastate their populations. This has led to a staggering price surge, making the luxury delicacy prohibitively expensive for many. The crisis is particularly acute in northern regions, where sea urchins have been a staple for generations.

Where Is It Happening?

The crisis is centered in regions like Rishiri, located in northern Japan, known for its thriving sea urchin fisheries. The impact is rippling across the country, affecting both local economies and consumers nationwide.

When Did It Take Place?

The shortage became apparent this summer, coinciding with Japan’s hottest recorded temperatures. The decline in sea urchin catches has been steadily worsening over the past few years due to climate change.

How Is It Unfolding?

– **Temperature Surge:** Ocean warming has disrupted sea urchin habitats, reducing their numbers.
– **Price Hike:** Prices have skyrocketed, with some servings reaching $120 in restaurants.
– **Economic Strain:** Fishermen are struggling as catches dwindle, impacting livelihoods.
– **Consumer Impact:** Many traditional dishes, like urchin rice bowls, are now luxury items rather than everyday meals.

Quick Breakdown

– Sea urchin populations are plummeting due to warmer ocean temperatures.
– Prices for the delicacy have surged, with some bowls now costing $120.
– Fisheries in northern Japan are hit hardest, causing economic strain.
– The crisis highlights the broader impact of climate change on marine life.

Key Takeaways

This sea urchin shortage is a stark reminder of how climate change is altering our food systems. As oceans warm, species like sea urchins are struggling to survive, leading to economic and cultural consequences. For many in Japan, these spiny delicacies are more than just food—they’re a piece of heritage. But as the crisis deepens, accessing them is becoming increasingly difficult, pushing the dish from comfort food to luxury.

Imagine paying $120 for a bowl of rice—something that used to be as common as a bowl of ramen. It’s like finding out the price of avocados has skyrocketed overnight, turning chipotle bowls into a rare treat.

“Climate change threatens more than just the environment. It’s reshaping economies and culture. When traditional foods become luxuries, it’s a wake-up call for sustainable change.”
– Dr. Masao Tanaka, Marine Ecologist

Final Thought

**Japan’s sea urchin shortage is a wake-up call. The crisis reveals how climate change disrupts food sources and livelihoods, pushing once-affordable delicacies out of reach. For fishermen, consumers, and cultural enthusiasts alike, this event underscores the urgent need for action to protect marine ecosystems. If ocean temperatures continue rising, more seafood staples could follow the same path—turning beloved dishes into expensive rare treats.**

Source & Credit: https://www.usnews.com/news/world/articles/2025-08-25/warming-seas-worsen-japans-price-shock-with-120-urchin-rice-bowls

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Business

In Protein-Deficient India, McDonald’s, Bollywood and Cricket Fuel Wellness Craze

Published

8 hours ago

August 26, 2025

Andrew Ross Sorkin

India’s Protein Deficit: How Burgers, Bollywood and Cricket Are Changing Diets

What’s Happening?

In a country where protein deficiency is a pressing health concern, McDonald’s is turning the tide with an unlikely hero: a 30-cent vegetarian protein slice. This innovative burger topping is flying off the shelves in South India, sparking a wellness craze that extends beyond fast food to Bollywood fitness trends and cricket-inspired protein supplements.

Where Is It Happening?

South India, with a focus on urban centers like Mumbai and Chennai.

When Did It Take Place?

Ongoing trend observed and reported in May 2024.

How Is It Unfolding?

McDonald’s introduces a high-protein vegetarian slice, mixing eating out with health benefits.
Celebrities and Bollywood stars promote fitness regimes and protein-rich diets.
Cricket players and sports influencers endorse protein supplements, normalizing it for fans.
Healthcare providers and nutritionists advocate balanced protein intake to combat deficiency.
Local food companies launch affordable protein-rich snacks targeting middle-class consumers.

Quick Breakdown

McDonald’s protein slice costs just 30 cents, making health more accessible.
Low-cost protein options are bridging the gap for South India’s protein-deprived population.
Bollywood fitness trends are influencing millions to adopt healthier lifestyles.
Cricket’s star power amplifies awareness about protein supplements among youth.

Key Takeaways

India’s struggle with protein deficiency is being addressed through a unique blend of affordable fast food, celebrity-driven fitness trends, and sports culture. McDonald’s innovative protein slice, though small, symbolizes a major shift in how everyday convenience food can meet nutritional needs. Meanwhile, Bollywood and cricket are turning health consciousness into a lifestyle movement, proving that wellness can be as viral as a blockbuster film or a championship win. This cultural shift isn’t just about fad diets—it’s a grassroots effort to improve public health.

Imagine turning a burger into a health boon—or a cricket match into a protein pitch meeting. In India, that’s not just a fantasy; it’s a revolution in progress.

Subtly incorporating health into fast food was never about a dietary overhaul but about making small habit changes that lead to big health wins.
– Neha Sharma, Nutrition Scientist

Final Thought

From McDonald’s counters to Bollywood screens, India’s wellness movement is rewriting the rules. Affordable, accessible, and influencer-backed solutions are closing the protein gap one burger, one fitness reel, and one cricket match at a time. The cultural shift proving that good nutrition isn’t a luxury but a national lifestyle makeover in the making.

Source & Credit: https://www.usnews.com/news/top-news/articles/2025-08-25/in-protein-deficient-india-mcdonalds-bollywood-and-cricket-fuel-wellness-craze

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