What is indirect bank guarantee in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: indirect bank guarantee

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: Bank guarantee issued by a correspondent bank usually the guarantee beneficiary's bank upon the counter-guarantee of the guarantee applicant's bank.

Smart SAP Assistant

• Key Concepts: 
  An indirect bank guarantee is a type of financial instrument used in SAP Treasury and Risk Management (FIN-FSCM-TRM). It is a guarantee issued by a bank on behalf of a customer, which is then used to secure a loan or other financial transaction. The bank acts as an intermediary between the customer and the lender, providing assurance that the customer will fulfill their obligations. 
  
  How to use it: 
  In SAP Treasury and Risk Management, indirect bank guarantees can be used to secure loans or other financial transactions. The bank issuing the guarantee will provide assurance that the customer will fulfill their obligations, thus reducing the risk for the lender. The customer must provide collateral to the bank in order to obtain the guarantee. 
  
  Tips & Tricks: 
  When using indirect bank guarantees, it is important to ensure that all parties involved are aware of the terms and conditions of the guarantee. It is also important to ensure that the collateral provided by the customer is sufficient to cover any potential losses. 
  
  Related Information: 
  For more information on indirect bank guarantees, please refer to SAP Help Portal: https://help.sap.com/viewer/product/FIN_FSCM_TRM/latest/en-US