What is covered receivable in SAP CRM-IFS - Financial Services?

SAP Term: covered receivable

• Component: CRM-IFS

• Component Name: Financial Services

• Description: The percentage and absolute share of the receivable that is collateralized by the collateral agreement.

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• Key Concepts: 
  Covered receivables are a type of financial instrument used by banks and other financial institutions to manage their risk exposure. They are created when a bank or other financial institution agrees to purchase a loan from another party, such as a company or individual, and then securitize the loan by issuing a covered receivable. The covered receivable is then sold to investors, who receive the interest payments from the loan. 
  
  How to use it: 
  In SAP CRM-IFS Financial Services, covered receivables can be used to manage risk exposure and provide liquidity to the bank or other financial institution. The covered receivable can be used to purchase loans from other parties, such as companies or individuals, and then securitize the loan by issuing a covered receivable. The covered receivable can then be sold to investors, who receive the interest payments from the loan. 
  
  Tips & Tricks: 
  When using covered receivables in SAP CRM-IFS Financial Services, it is important to ensure that the terms of the loan are clearly defined and that all parties involved understand their obligations. Additionally, it is important to ensure that the interest rate on the loan is competitive and that the loan is properly secured. 
  
  Related Information: 
  For more information on covered receivables in SAP CRM-IFS Financial Services, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information on how to use covered receivables in SAP CRM-IFS Financial Services.