What is guarantee of payment in SAP RE-FX - Flexible Real Estate Management?

SAP Term: guarantee of payment

• Component: RE-FX

• Component Name: Flexible Real Estate Management

• Description: Contract management: security deposit agreement One of the forms of security deposit possible in a security deposit agreement. The types of guarantee of payment include, among others, bank guarantees and local government guarantees.

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• Key Concepts: 
  A guarantee of payment is a type of financial assurance that is used in SAP RE-FX Flexible Real Estate Management. It is a contractual agreement between two parties, where one party agrees to pay a certain amount of money to the other party in the event that the original debtor fails to pay. This type of guarantee is often used in real estate transactions, as it provides additional security for the lender. 
  
  How to use it: 
  In SAP RE-FX Flexible Real Estate Management, a guarantee of payment can be used to secure a loan or other financial transaction. The guarantor will agree to pay the amount of money specified in the contract if the original debtor fails to do so. This type of guarantee can be used for both short-term and long-term loans, and can be set up with either an individual or an organization as the guarantor. 
  
  Tips & Tricks: 
  When setting up a guarantee of payment in SAP RE-FX Flexible Real Estate Management, it is important to ensure that all parties involved understand the terms and conditions of the agreement. It is also important to make sure that all parties are aware of their responsibilities and obligations under the agreement. Additionally, it is important to keep track of any changes or updates to the agreement over time. 
  
  Related Information: 
  For more information on guarantees of payment in SAP RE-FX Flexible Real Estate Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide additional information on this topic.