What is asset based funding in SAP FS-TXS - Funding Management?

SAP Term: asset based funding

• Component: FS-TXS

• Component Name: Funding Management

• Description: A form of funding where the investors are given explicit guarantees. Typical assets that fall into this category are mortgage loans or leasing contracts including the securities. The opposite to this is senior unsecured lending. Here the only real security is a bankruptcy estate in the event of insolvency where the investors must share any proceed with other creditors.

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• Key Concepts: 
  Asset-based funding is a type of financing that uses an asset as collateral to secure a loan. This type of financing is often used by businesses to acquire capital for investments or to cover operational costs. In SAP, the FS-TXS Funding Management component provides the tools and functionality to manage asset-based funding. 
  
  How to use it: 
  The FS-TXS Funding Management component allows users to manage asset-based funding in SAP. This includes setting up and managing loan agreements, tracking payments, and monitoring the status of loans. Additionally, users can use the component to generate reports and analyze data related to asset-based funding. 
  
  Tips & Tricks: 
  When setting up loan agreements in the FS-TXS Funding Management component, it is important to ensure that all relevant information is included. This includes the loan amount, interest rate, repayment schedule, and any other relevant details. Additionally, it is important to regularly monitor the status of loans and payments in order to ensure that all payments are made on time. 
  
  Related Information: 
  The FS-TXS Funding Management component is part of the SAP Financial Services Network (FSN). The FSN provides a comprehensive suite of financial services solutions for businesses of all sizes. Additionally, SAP offers a range of other financial services solutions such as cash management, treasury management, and risk management.