Introduction

In 2025, the world of small businesses is changing fast. 

For small pharmacies in India, the days of relying only on cash payments are over. 

Now, using digital tools like UPI (Unified Payments Interface) and card payments doesn’t just make daily transactions easier — it can actually help build your business credit score.

If you’re a pharmacy owner who wants to grow your business, get better loan options, and earn supplier trust, understanding how to build your business CBIL score using UPI and cards is a game-changer.

This blog explains everything in simple language — what a business credit score is, how digital payments help, and how you can get started today.

What is a Business Credit Score?

A business credit score is a number that shows how trustworthy your pharmacy is when it comes to borrowing money and paying it back. 

It’s like a report card for your business’s financial health.

In India, credit bureaus like CIBIL (Credit Information Bureau of India Limited), Experian, and Equifax track your business credit score.

Why is it important for small pharmacies?

A better business credit score means:

• Easier loans and higher credit limits
• Lower interest rates
• Trust from suppliers and vendors
• More growth opportunities

Earlier, only large businesses with proper paperwork and a loan history could build strong credit scores. 

But now, thanks to UPI and card payments, even small medical stores can build their score step by step.

How UPI and Card Payments Help Build Your Business CBIL Score

1. UPI & Card Transactions Show Financial Discipline

Every time your pharmacy accepts a UPI payment or uses a business card, that transaction gets recorded digitally.

If these payments happen regularly and smoothly, lenders can see:

• Your cash flow is stable
• Customers are paying digitally
• Your business is active and transparent

This helps build a credit profile — even if you haven’t taken a loan before.

2. NPCI’s New Digital Payment Score (DPS)

The National Payments Corporation of India (NPCI) is working on a new credit scoring system called Digital Payment Score. 

This score will track your digital transactions via UPI and cards to calculate your creditworthiness.

Even if you’ve never taken a loan, your regular payments can now prove that you run a responsible, growing business.

3. More Loan Approvals from Fintech Companies

Many new-age lenders and NBFCs look at your UPI and card activity before giving loans.

If you:

• Accept UPI regularly from customers
• Pay suppliers via digital cards
• Repay credit card bills on time

…then your chances of loan approval go up, often without needing a credit history.

4. UPI-linked Credit Cards Improve Score

When you use a business credit card linked to UPI:

• You build credit utilization history (how much of your limit you use)
• You create a payment history (as long as you pay on time)
• You show that you can manage both digital tools and credit together

This strengthens your CBIL score faster than relying on cash-only systems.

5. UPI and Cards Push Your Business into Formal Banking

When you move from cash to UPI or card payments:

• You start using business bank accounts
• You separate personal and pharmacy money
• You keep clean digital records

All of this makes your business look more “credit-ready” to banks and lenders.

Practical Steps for Small Pharmacies

Step 1: Open a Business Bank Account

Keep all pharmacy transactions in this account only. This gives you clean, trackable financial records.

Step 2: Start Accepting UPI and Card Payments

• Display your UPI QR code at the counter
• Accept Rupay, Visa, and Mastercard payments
• Offer small discounts to encourage digital payments

Step 3: Use a Credit Card for Business Expenses

• Pay suppliers, internet, rent, or medicine purchases using a business credit card
• Link your card to UPI for smoother daily spending
• Always pay your card bill on time

Step 4: Track Transactions Monthly

Use apps or Excel to track:

• Daily UPI sales
• Card spending and repayments
• Customer payment modes

This helps you prove your creditworthiness.

Step 5: Work with Lenders that Report to Credit Bureaus

Choose NBFCs and banks that report repayment behavior to CIBIL and others. Ask before taking any loan or card.

Step 6: Check Your Business Credit Score Regularly

Visit CIBIL, Experian, or Equifax websites and check your score every 3 months. Fix errors quickly.

Benefits of Building Your Business Credit Score