meta

Asset-based Lending in Synovus

Synovus Asset-based Lending (ABL) is designed to provide flexible, scalable credit solutions secured primarily by a company’s working capital assets. Built for businesses that need predictable liquidity to manage seasonal swings, fund growth, support acquisitions, or stabilize operations during transitions, Synovus’s ABL programs combine customized advance structures with dedicated relationship management and industry expertise. The product focuses on collateral values—accounts receivable, inventory, equipment and other tangible assets—enabling qualified companies to access capital based on their asset base rather than solely on earnings or cash flow.

Key Features

• Collateral-driven facility: Borrowing base calculations tied to eligible accounts receivable, inventory and certain fixed assets.
• Flexible advance rates: Competitive advance percentages tailored by asset type and industry risk characteristics.
• Seasonal and swing lines: Seasonal borrowing capacity and temporary increases to accommodate cyclical needs.
• Revolving credit availability: Ongoing access to capital as assets fluctuate, with periodic reporting to support borrowing base adjustments.
• Term and transactional support: Facilities that can incorporate term loans for capital expenditure or acquisition financing alongside revolving ABL components.
• Dedicated underwriting: Industry-focused credit teams that evaluate collateral quality, concentration, and collection characteristics.
• Integrated treasury services: Cash management, lockbox and payment processing solutions to improve collections and monitoring.

Benefits for Businesses

• Working capital optimization: Convert receivables and inventory into reliable liquidity to support daily operations and growth initiatives.
• Scalability: Facility capacity grows with the business as eligible assets increase, reducing the need for frequent refinancing.
• Improved flexibility: Use funds for inventory purchases, payroll, supplier payments, capital investments and strategic opportunities.
• Alignment with performance: Borrowing base structures mean financing adjusts with business volume, reducing the mismatch between credit capacity and asset levels.
• Industry insight: Synovus’s experienced relationship managers provide guidance on optimizing collateral, improving collections and reducing risk concentrations.

Typical Collateral and Eligibility

Synovus evaluates a broad range of tangible assets to support ABL commitments. Eligible collateral commonly includes:

• Domestic accounts receivable from creditworthy customers (with concentration limits applied).
• Finished goods and raw material inventory that is marketable and tracked per agreed procedures.
• Equipment and certain fixed assets with clear title and verifiable value.
• Letters of credit, purchase orders or other transactional support in trade finance contexts.

Eligibility is determined through underwriting that assesses asset quality, collection history, inventory turnover, and borrower operational controls. Businesses in manufacturing, distribution, wholesale trade, and select service sectors often find ABL especially appropriate.

How Borrowing Base Works

The borrowing base is the calculated amount of credit available to the borrower based on the value of eligible collateral. Synovus typically applies advance rates to different collateral classes; for example, a higher advance on accounts receivable from prime customers and more conservative advances on inventory or slow-moving items. Regular reporting—often weekly or monthly—supports the calculation, and periodic audits may be conducted to verify asset existence and condition. Borrowing base mechanics ensure the facility reflects working capital dynamics, providing access when receivables and inventory are strong and reducing exposure when asset values decline.

Structuring and Documentation

ABL arrangements are structured to balance flexibility and risk management. Documentation usually includes a credit agreement, security agreement, perfected liens on pledged assets, borrowing base certificates, and appropriate covenants and reporting requirements. Covenants may address minimum liquidity, leverage metrics, and timely submission of accounts receivable aging reports, inventory reports, and financial statements. Synovus works to streamline documentation while preserving necessary controls to protect both the borrower and the lender.

Monitoring and Relationship Management

Ongoing monitoring is central to ABL. Synovus provides proactive relationship management that includes periodic reviews of collateral, regular communication regarding business developments, and coordination of cash management services to accelerate collections and simplify reporting. This active partnership helps identify risks early, optimize working capital practices, and adjust capacity as the business evolves.

Pricing and Fees

Pricing for ABL facilities reflects the borrower’s credit profile, collateral mix, advance rates, facility size and market conditions. Typical components include an interest rate based on a margin over a reference rate, facility or commitment fees, and customary administrative or monitoring fees. Synovus aims to offer transparent pricing and practical fee structures aligned with the frequency and complexity of reporting and collateral administration required by the arrangement.

Use Cases

• Growth financing: Fund expansion of production, inventory build for new business, or geographic expansion without diluting equity.
• Seasonal support: Smooth cash flow through peak buying seasons by borrowing against inflating receivables and inventory.
• Acquisitions: Bridge or supplement acquisition financing when tangible assets can secure the obligation.
• Turnaround financing: Provide managed liquidity for businesses in operational transition with recoverable collateral value.
• Supply chain financing: Finance inventory purchases and supplier obligations while improving supplier terms and stability.

Application Process

The process begins with an assessment of your company’s asset mix and financing needs. Initial discussions outline eligibility, potential advance rates and structure. Synovus then conducts underwriting, which includes reviewing financial statements, customer concentrations, receivable aging and inventory reports. Once terms are agreed, documentation is prepared, collateral is perfected and reporting processes are implemented. Synovus supports integration of treasury services and operational practices to ensure the facility functions efficiently after closing.

Frequently Asked Questions

Q: Who benefits most from asset-based lending?
A: Businesses with significant receivables, inventory or equipment that need flexible working capital—especially those experiencing rapid growth, seasonality or undergoing strategic transactions.

Q: How often is the borrowing base recalculated?
A: Recalculation frequency varies—common intervals are weekly or monthly—depending on the facility terms and the volatility of collateral.

Q: Can ABL be combined with other financing?
A: Yes. ABL can be part of a blended capital solution that includes term loans, mezzanine financing or equity investments, tailored to the company’s needs.

Why Choose Synovus

Synovus pairs asset-based lending expertise with relationship-driven service. The bank focuses on creating pragmatic credit solutions that evolve with your business, delivering responsive underwriting, clear operational processes and integrated treasury services. Synovus’s goal is to provide reliable liquidity, minimize administrative friction, and act as a long-term financing partner that supports growth, resilience and strategic initiatives.

Explore how Asset-based Lending at Synovus can convert your company’s tangible assets into productive capital and provide the working capital foundation needed to pursue growth, manage volatility and execute strategic plans.

Address Bank: Columbus, Georgia, U.S.
Bank: Synovus
Headquarters: Columbus, Georgia
Products: Loans & Credit
Type: Asset-Based Lending