What is collateral in SAP CRM - Customer Relationship Management?

SAP Term: collateral

• Component: CRM

• Component Name: Customer Relationship Management

• Description: Product and company marketing and information material that is distributed by sales people or sent to customers. &EXAMPLE& Brochures Specifications Catalogs Posters Customer testimonials

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• Key Concepts: 
  Collateral in SAP CRM Customer Relationship Management is a type of asset that can be used as security for a loan or other financial transaction. It is typically a physical asset such as real estate, equipment, or inventory, but can also include intangible assets such as intellectual property. Collateral is used to reduce the risk of the lender in case the borrower defaults on the loan. 
  
  How to use it: 
  In SAP CRM, collateral can be used to secure a loan or other financial transaction. The collateral must be registered in the system and linked to the loan or transaction. The system will then track the collateral and its value over time. If the borrower defaults on the loan, the lender can use the collateral to recover some or all of their losses. 
  
  Tips & Tricks: 
  When registering collateral in SAP CRM, it is important to accurately record its value and any changes that occur over time. This will ensure that the lender has an accurate picture of the collateral’s value in case of default. 
  
  Related Information: 
  Collateral is just one way to reduce risk in a financial transaction. Other methods include credit checks, insurance policies, and guarantees. It is important to understand all of these methods and how they can be used to reduce risk in a financial transaction.