What is non-recurring loan undertaking in SAP FS-CMS - Collateral Management System?

SAP Term: non-recurring loan undertaking

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A statement or obligation by a prior ranked creditor to counterparts of equal or lower ranking, to ensure that a loan will not be made available again or be used as collateral for another loan.

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• Key Concepts: 
  Non-recurring loan undertaking is a type of loan agreement that is not intended to be renewed or extended. It is a one-time loan agreement between a lender and a borrower, and the borrower is expected to repay the loan in full at the end of the term. The FS-CMS Collateral Management System (CMS) is a software solution from SAP that helps lenders manage their collateral and loans. 
  
  How to use it: 
  The FS-CMS Collateral Management System allows lenders to easily manage their non-recurring loan undertakings. It provides an overview of all loans, including the terms of each loan, the amount of collateral held, and the status of each loan. The system also allows lenders to track payments and manage their collateral more efficiently. 
  
  Tips & Tricks: 
  When setting up a non-recurring loan undertaking, it is important to ensure that all terms are clearly defined and agreed upon by both parties. Additionally, lenders should ensure that they have sufficient collateral to cover the loan in case of default. 
  
  Related Information: 
  For more information on non-recurring loan undertakings, please refer to SAP's documentation on the FS-CMS Collateral Management System. Additionally, you can find more information on collateral management and other types of loans in SAP's Financial Services Solutions Guide.