What is multi-borrower facility in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: multi-borrower facility

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Facility that is assigned to a group of business partners consortium. In the system, the business partner structure is depicted as a one-level business partner hierarchy. The multi-borrower facility contains rules that are communicated to selected objects of the business partners that are part of the consortium. The multi-borrower facility is depicted as one object. The objects belonging to it are depicted as separate objects, which are linked to the multi-borrower facility by means of a relationship category. The objects can also be assigned directly to the business partners that belong to the multi-borrower facility.

Smart SAP Assistant

• Key Concepts: 
  Multi-borrower facility is a feature of the Credit Risk Management component of SAP Financial Services Business Automation (FS-BA-PM-CR). It allows multiple borrowers to be associated with a single loan, allowing for more efficient management of credit risk. 
  
  How to use it: 
  In order to use the multi-borrower facility, the user must first create a loan in the system. Once the loan is created, the user can then add multiple borrowers to the loan. The user can also assign different credit limits and repayment terms to each borrower. 
  
  Tips & Tricks: 
  When using the multi-borrower facility, it is important to keep track of each borrower’s credit limit and repayment terms. This will help ensure that all borrowers are held accountable for their portion of the loan. 
  
  Related Information: 
  The multi-borrower facility is part of SAP’s Credit Risk Management component, which also includes features such as credit scoring, collateral management, and portfolio analysis. These features can be used in conjunction with the multi-borrower facility to further manage credit risk.