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

credit standing check - Overview

• Component: FS-CML

• Component Name: Loans Management

• Description: A review of the credit standing on the basis of the business partner data. Creditworthiness is checked by valuing the partner's income and financial situation.

credit standing check - Details

• 
  Key Concepts: 
  Credit standing check is a feature of the FS-CML Loans Management component of SAP. It is used to assess the creditworthiness of a customer or borrower before granting them a loan. The credit standing check evaluates the customer’s financial history, credit score, and other factors to determine their creditworthiness. 
  
  How to use it: 
  The credit standing check can be used by lenders to assess the risk associated with granting a loan to a customer. The lender can use the information gathered from the credit standing check to decide whether or not to grant the loan. The lender can also use the information gathered from the credit standing check to set terms and conditions for the loan. 
  
  Tips & Tricks: 
  When using the credit standing check, it is important to consider all factors that may affect a customer’s creditworthiness. This includes their financial history, credit score, and other factors such as their employment status and income level. It is also important to consider any potential risks associated with granting a loan to a customer. 
  
  Related Information: 
  The FS-CML Loans Management component of SAP also includes features such as loan origination, loan servicing, and loan repayment tracking. These features can be used in conjunction with the credit standing check to ensure that customers are able to repay their loans on time and in full.