What is 'credit agency' in SAP FIN-FSCM-CR - Credit Management?

credit agency - Overview

• Component: FIN-FSCM-CR

• Component Name: Credit Management

• Description: A for-profit company that provides information about the financial situation of individuals or businesses, especially regarding their creditworthiness.

credit agency - Details

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  Key Concepts: 
  A credit agency is an organization that provides credit information and ratings for individuals and businesses. Credit agencies collect data from various sources, such as banks, creditors, and public records, to create a credit report. This report is then used by lenders to assess the creditworthiness of potential borrowers. 
  
  How to use it: 
  In SAP, the Credit Management component (FIN-FSCM-CR) allows users to manage credit information and ratings for customers. This includes setting up credit limits, monitoring customer payment behavior, and managing customer risk. The Credit Management component also provides tools for analyzing customer data and generating reports. 
  
  Tips & Tricks: 
  When setting up credit limits in SAP, it is important to consider the customer’s payment history and current financial situation. This will help ensure that the customer is able to make payments on time and avoid defaulting on their loan. Additionally, it is important to regularly monitor customer payment behavior in order to identify any potential risks or issues. 
  
  Related Information: 
  The Credit Management component in SAP is closely related to the Risk Management component (FIN-FSCM-RM). The Risk Management component provides tools for analyzing customer data and identifying potential risks or issues. Additionally, the Risk Management component can be used to set up risk thresholds and monitor customer risk levels over time.