What is informational covenant in SAP FS-FBS-CML-LWP - SAP Loans Workplace?

SAP Term: informational covenant

• Component: FS-FBS-CML-LWP

• Component Name: SAP Loans Workplace

• Description: An agreement that requires the borrower to submit information/documents by a certain deadline.

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• Key Concepts: 
  An informational covenant is a type of agreement between a lender and a borrower that requires the borrower to provide certain information to the lender on a regular basis. This information can include financial statements, loan balances, and other relevant data. The purpose of this agreement is to ensure that the lender has up-to-date information about the borrower's financial situation. 
  
  How to use it: 
  Informational covenants are used in SAP Loans Workplace (FS-FBS-CML-LWP) to help lenders monitor their borrowers' financial health. The borrower must provide the lender with the required information on a regular basis, and the lender can use this information to assess the borrower's ability to repay the loan. If the borrower fails to provide the required information, the lender may take action against them. 
  
  Tips & Tricks: 
  It is important for borrowers to understand their informational covenant and comply with its requirements. Borrowers should also keep track of their financial statements and other relevant data so that they can provide it to their lender in a timely manner. 
  
  Related Information: 
  Informational covenants are just one of many types of covenants used in SAP Loans Workplace (FS-FBS-CML-LWP). Other types of covenants include financial covenants, which require borrowers to maintain certain financial ratios, and performance covenants, which require borrowers to meet certain performance targets.