What is collateral inspection in SAP FS-CMS - Collateral Management System?

SAP Term: collateral inspection

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A Regular check of the existence and value of an object. This check can be performed without viewing the collateral object or on location at the premises of the collateral giver.

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• Key Concepts: 
  Collateral inspection is a process used in the FS-CMS Collateral Management System (CMS) to ensure that the collateral held by a lender is in good condition and meets the terms of the loan agreement. It involves a physical inspection of the collateral, such as a property or vehicle, to assess its condition and value. The inspection is conducted by an independent third-party inspector who is not affiliated with either the lender or borrower.
  
  How to use it: 
  The FS-CMS Collateral Management System allows lenders to manage their collateral inspections in an efficient and secure manner. The system provides tools for scheduling inspections, tracking inspection results, and managing any necessary follow-up actions. It also provides automated alerts when an inspection is due or overdue.
  
  Tips & Tricks: 
  When scheduling an inspection, it is important to select an inspector who is experienced in the type of collateral being inspected. Additionally, lenders should ensure that all relevant documents are available for review during the inspection. This includes loan agreements, title documents, and any other documents related to the collateral.
  
  Related Information: 
  The FS-CMS Collateral Management System also provides tools for monitoring collateral performance over time. This includes tracking changes in value, condition, and ownership of the collateral. Additionally, lenders can use the system to generate reports on their collateral portfolio and identify potential risks or opportunities.