What is revolving drawdown in SAP FS-CML - Loans Management?

SAP Term: revolving drawdown

• Component: FS-CML

• Component Name: Loans Management

• Description: A drawdown where principal repayments increase the available amount at the facility and subfacility levels rather than at the drawdown level. Example Facility: US$ 3 million with a 2% rate of commitment interest Subfacility A: US$ 2 million for the product group of short-term mortgages Revolving Drawdown: US$ 1 million taken under Subfacility A Available Amount at facility level: US$ 2 million Available Amount at Subfacility A: US$ 1 million Repayment of principal for the revolving drawdown: US$ 0.5 million New available amounts at the facility and subfacility levels are increased by the amount of repayment. New available amount at Subfacility A level: US$ 1.5 million New available amount at Facility level: US$ 2.5 million

Smart SAP Assistant

• Key Concepts: 
  Revolving drawdown is a feature of the FS-CML Loans Management component of SAP. It allows customers to draw down funds from a loan in multiple installments, with the option to draw down additional funds as needed. The customer can also pay back the loan in installments, with the option to pay back more than the minimum amount due. 
  
  How to use it: 
  To use revolving drawdown, customers must first set up a loan agreement with their lender. Once the agreement is in place, customers can draw down funds from the loan in multiple installments. They can also pay back the loan in installments, with the option to pay back more than the minimum amount due. 
  
  Tips & Tricks: 
  When using revolving drawdown, it is important to keep track of how much money has been drawn down and how much has been paid back. This will help ensure that customers do not exceed their loan limit or miss any payments. 
  
  Related Information: 
  For more information on revolving drawdown and other features of FS-CML Loans Management, please refer to SAP's official documentation.