What is multiple borrower facility in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: multiple borrower facility

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Special form of a facility: More than one business partner is authorized to make drawings on the facility.

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• Key Concepts: 
  Multiple borrower facility is a feature of the IS-B-RA-CL Default Risk and Limit System in SAP. It allows multiple borrowers to be associated with a single loan, allowing for more efficient management of the loan. This feature also allows for the sharing of risk between multiple borrowers, reducing the risk of default. 
  
  How to use it: 
  To use the multiple borrower facility, you must first create a loan in the system. Once the loan is created, you can add multiple borrowers to it. You can then assign different levels of risk to each borrower, allowing you to manage the risk associated with the loan more effectively. 
  
  Tips & Tricks: 
  When using the multiple borrower facility, it is important to ensure that all borrowers are aware of their responsibilities and obligations. This will help to ensure that all parties are aware of their roles and can work together to manage the loan effectively. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes features such as credit limit management, collateral management, and credit scoring. These features can be used in conjunction with the multiple borrower facility to further reduce risk and improve loan management.