What is lending value in SAP FS-CMS - Collateral Management System?

SAP Term: lending value

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The value of a lending object that is derived by taking into account, all factors influencing the value over the period of lending. This value is referenced to the asset from object management. Definition according to § 12 1 of the German Mortgage Bank Act: The value attached to the land may not exceed the market value, which is calculated in line with strict requirements. Only permanent features of the land and the income that can be guaranteed for any owner in the long term, are taken into account when calculating the lending value. Formula: Lending value = Market value - collateral markdowninstitution-specific.

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• Key Concepts: 
  Lending Value is a feature of the FS-CMS Collateral Management System (CMS) that allows lenders to assess the value of a loan or other financial instrument. It is based on the current market value of the collateral, the creditworthiness of the borrower, and other factors. The lending value is used to determine the amount of money that can be lent to a borrower. 
  
  How to use it: 
  The lending value is calculated by the CMS based on the current market value of the collateral, the creditworthiness of the borrower, and other factors. The lender can then use this information to determine how much money they are willing to lend to a borrower. The lending value can also be used to assess the risk associated with a loan or other financial instrument. 
  
  Tips & Tricks: 
  When assessing a loan or other financial instrument, it is important to consider all factors that may affect its lending value. This includes the current market value of the collateral, the creditworthiness of the borrower, and any other factors that may affect its risk profile. Additionally, lenders should consider any potential changes in market conditions that could affect their lending decision. 
  
  Related Information: 
  The FS-CMS Collateral Management System also provides features such as loan monitoring and reporting, portfolio management, and risk management. Additionally, lenders can use this system to track their loans and manage their portfolios more effectively.