What is guarantee in SAP FS-CML - Loans Management?

SAP Term: guarantee

• Component: FS-CML

• Component Name: Loans Management

• Description: The obligation of the guarantor toward the creditor of the third party so-called main debtor to assume liability for his or her debts.

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• Key Concepts: 
  A guarantee is a type of financial security that is provided by a third party to ensure that a loan or other financial obligation is fulfilled. In the context of SAP FS-CML Loans Management, a guarantee is a contractual agreement between two parties, the guarantor and the borrower, in which the guarantor agrees to pay the borrower’s debt if the borrower fails to do so. 
  
  How to use it: 
  In SAP FS-CML Loans Management, guarantees can be used to secure loans and other financial obligations. The guarantor must provide sufficient evidence of their ability to pay the debt in case of default. Once the guarantee is accepted, it will be recorded in the system and can be used to secure loans and other financial obligations. 
  
  Tips & Tricks: 
  When setting up a guarantee in SAP FS-CML Loans Management, it is important to ensure that all parties involved are aware of their responsibilities and obligations. It is also important to ensure that all documents related to the guarantee are properly signed and stored in the system for future reference. 
  
  Related Information: 
  For more information on guarantees in SAP FS-CML Loans Management, please refer to the official documentation available on the SAP website. Additionally, there are several online resources available that provide detailed information on how to set up and manage guarantees in SAP FS-CML Loans Management.