What is collateral type in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: collateral type

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Business classification of the different forms of collateral for financial transactions, such as mortgages, guarantees and assignments. Further values for the collateral type can be added in Customizing.

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• Key Concepts: 
  Collateral type is a component of the Credit Risk Management (CRM) module in SAP Financial Services (FS-BA-PM-CR). It is used to define the type of collateral that can be used to secure a loan or other financial transaction. Collateral types can include real estate, vehicles, stocks, bonds, and other assets. 
  
  How to use it: 
  In order to use collateral type in SAP FS-BA-PM-CR, users must first define the collateral type in the system. This can be done by entering the collateral type name and description in the system. Once the collateral type is defined, it can be assigned to a loan or other financial transaction. 
  
  Tips & Tricks: 
  When defining a collateral type in SAP FS-BA-PM-CR, it is important to ensure that all relevant information is entered accurately. This includes the name and description of the collateral type as well as any additional information that may be required. 
  
  Related Information: 
  For more information on how to use collateral type in SAP FS-BA-PM-CR, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.