What is utilization in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: utilization

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Volume-oriented attributable amount derived from the current level of drawings.

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• Key Concepts: 
  Utilization is a term used in the IS-B-RA-CL Default Risk and Limit System to refer to the amount of credit that a customer has used up. It is calculated by subtracting the current available credit from the total credit limit. Utilization is an important factor in determining a customer's creditworthiness. 
  
  How to use it: 
  The utilization rate can be used to assess a customer's creditworthiness. A high utilization rate indicates that the customer is using a large portion of their available credit, which may indicate that they are having difficulty managing their finances. On the other hand, a low utilization rate may indicate that the customer is managing their finances well and is likely to be able to pay back any loans they take out. 
  
  Tips & Tricks: 
  It is important to keep an eye on your customers' utilization rates, as this can help you determine whether or not they are likely to be able to pay back any loans they take out. Additionally, it can help you decide whether or not to increase or decrease their credit limit. 
  
  Related Information: 
  Utilization is just one factor in determining a customer's creditworthiness. Other factors include payment history, debt-to-income ratio, and credit score. It is important to consider all of these factors when assessing a customer's creditworthiness.