What is 'credit standing' in SAP FS-CML - Loans Management?

credit standing - Overview

• Component: FS-CML

• Component Name: Loans Management

• Description: An indication of the business partner's capacity to pay.

credit standing - Details

• 
  Key Concepts: 
  Credit standing is a measure of a customer's creditworthiness. It is used to assess the risk of lending money to a customer and to determine the terms of the loan. In SAP FS-CML Loans Management, credit standing is used to determine the credit limit for a customer and to set up the terms of the loan. 
  
  How to use it: 
  In SAP FS-CML Loans Management, credit standing is used to determine the credit limit for a customer and to set up the terms of the loan. The credit standing is determined by evaluating the customer's financial history, such as their payment history, income, and other factors. The credit standing is then used to determine the credit limit and terms of the loan. 
  
  Tips & Tricks: 
  When evaluating a customer's credit standing, it is important to consider all relevant factors, such as their payment history, income, and other factors. It is also important to consider any potential risks associated with lending money to a customer. 
  
  Related Information: 
  SAP FS-CML Loans Management provides tools for evaluating a customer's credit standing and setting up loan terms. For more information on SAP FS-CML Loans Management, please refer to the official SAP documentation.