What is debt deferral agreement in SAP FS-CMS - Collateral Management System?

SAP Term: debt deferral agreement

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: An agreement between the debtor and the creditor on the payment process for the due arrears. Example A debt deferral agreement can be set up by agreeing on lower monthly installments and longer duration for the receivable.

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• Key Concepts: 
  A debt deferral agreement is a contract between a lender and a borrower that allows the borrower to delay making payments on a loan for a certain period of time. In the context of SAP’s FS-CMS Collateral Management System, debt deferral agreements are used to manage the risk associated with lending money to customers. 
  
  How to use it: 
  In the FS-CMS Collateral Management System, debt deferral agreements are used to manage the risk associated with lending money to customers. The system allows lenders to set up debt deferral agreements with their customers, which can be used to delay payments on loans for a certain period of time. The system also allows lenders to monitor and manage their debt deferral agreements, ensuring that they are in compliance with applicable regulations. 
  
  Tips & Tricks: 
  When setting up a debt deferral agreement in the FS-CMS Collateral Management System, it is important to ensure that all parties involved understand the terms of the agreement and that all applicable regulations are being followed. Additionally, lenders should ensure that they are monitoring their debt deferral agreements regularly in order to ensure that they remain in compliance with applicable regulations. 
  
  Related Information: 
  For more information about SAP’s FS-CMS Collateral Management System and how it can be used to manage debt deferral agreements, please visit SAP’s website at https://www.sap.com/products/collateral-management-system.html. Additionally, you can find more information about debt deferral agreements and how they can be used to manage risk on the Investopedia website at https://www.investopedia.com/terms/d/debtdeferralagreement.asp.