Loans: Overview

Loans Management offers all the functions you need for every stage involved in the loans management process, starting from the acquisition stage, through loan disbursement to repayment.

The module supports all common loan forms thanks to the high degree of flexibility offered for setting up conditions, flows, collateral and loan partners. Besides traditional loan forms, the system also supports borrower’s note loans, a special form of loan common on the German market.

Loans are grouped in the following product categories:

Depending on your company’s specific requirements, you can subdivide your loan portfolio into product types, which you can use to define specific forms of loan or business areas (Customizing).

The main elements of loans management are:

Contract conditions form the basis for the contractual relationship and for automatic processing. The conditions are used to document the contract in the system and to generate planned records, which are necessary for automatically creating debit positions for receivables.

Using the status concept, you can identify a loan at the various stages of the contract process (acquisition of loan business through to conclusion of a contract).

The central business partner management function is based on a role concept which allows you to assign address and master data to a business partner for each of the partner’s roles. A partner fulfills a certain role in the contract (such as main borrower, guarantor), which you have to assign to each partner.

You can also record collateral for loans, such as encumbrances and guarantees, in addition to the objects (or properties) to which they relate.