Synovus is a financial corporation based in Columbus, Georgia, previously known as the Trust company and Columbus bank. Synovus has assets worth 45 billion US dollars. This bank also offers several business loans, including SBA loans, and is a preferred SBA Lender.
9. SBA 7(a) Loan
- The most popular SBA loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Helps small businesses purchase inventory, equipment, and property and enables them to expand.
10.SBA Express Line of Credit
- Term: 10 to 25 years
- Amount: 350,000 to 500,000 dollars
- Purpose: Offers support to export businesses that are looking to grow and compete in markets abroad
11.SBA 504 Loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
12.SBA CapLine Working Capital Loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Provides access to funds to finance different business requirements
13.SBA Export Working Capital
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Allows the business to apply for a loan before finalizing the contract, giving the owners peace of mind.
14.SBA International Trade Loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Helps new businesses enter new markets and expand.
Types of Loans offered by Synovus
1. SBA 7(a) Loan
- The most popular SBA loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Helps small businesses purchase inventory, equipment, and property and enables them to expand.
2. SBA Express Line of Credit
- Term: 10 to 25 years
- Amount: 350,000 to 500,000 dollars
- Purpose: Offers support to export businesses that are looking to grow and compete in markets abroad
3. SBA 504 Loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
4. SBA CapLine Working Capital Loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Provides access to funds to finance different business requirements
5. SBA Export Working Capital
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Allows the business to apply for a loan before finalizing the contract, giving the owners peace of mind.
6. SBA International Trade Loan
- Term: 10 to 25 years
- Amount: 5 million dollars
- Purpose: Helps new businesses enter new markets and expand.
7. Owner-Occupied Real Estate
- Flexible repayment plans, designed to suit the needs of the business
- Synovus provides expert guidance
- Variety in loan terms, choose the ones that fit your business requirements
8. Lines of Credit
- Amount: up to 30 million dollars
- Flexible
- A credit line can be secured by fixed assets such as real estate, equipment, and inventory.
- Link your commercial checking with the line of credit to enjoy benefits
- Obtain longer lines of credit by working with an expert from Synovus; this will also give you access to syndication partners and the capital market.
- Monitored credit line, receive automatic increases in lines for fulfilling seasonal business needs.
- Terms as long as three years
9. Flex Lines of Credit
- Amount: 250,000 dollars through a flexible credit line
- Conveniently access funds through phone, online, checks, and by visiting the bank branch
- Interest-only and Principe plus interest options are available
- Link credit line account to your business account to obtain overdraft protection
Synovus Interests, Fees, and Loan Options
19.SBA (7A)
- Interest Rate: 4.25 % for < 25,000 dollars, 3.25 % for 25,0001 to 50,000 dollars, 2.25 % for > 50,0001
- Fees: 0.25 % (short-term loan) 3.5 % (1000,000 dollars)
20.SBA/CDC 504 Loan Program
- Interest Rate: 2.4 % (Ten-year term), 2.35 % (25-year term), 2.41 % (also for 25-year term)
- Fees: 0.25 % (Loan servicing) 0.5 % (SBA Guarantee)
21.SBA Express Lines of Credit
- Interest Rates: 11.25 % (< 25,000 dollar), 10.25 % (25,0001 to 50,000 dollars), 9.25 % (50,001 – 250,000 dollars) 8.25 % (> 250,000 dollars)
- Fees: <150,000 dollars (2 % guaranteed portion of the loan) 150,000 to 700,000 (3 % guaranteed portion of the loan)
22.SBA CapLine Working Capital Loan
- Interest Rates: 3.25 % Prime Rate (Depends on credit history)
- Fees: 0.5 %
23.SBA Export Working Capital
- Interest Rates: 3.25 % Prime Rate (Depends on credit history)
- Fees: 0.5 %
24.SBA International Trade Loan
- Interest Rates: 3.25 % Prime Rate (Depends on credit history)
- Fees: 0.5 %
25.Owner-Occupied Commercial Real Estate
- Interest Rates: 5.45 % (APR)
- Fees: Not specified
26.Lines of Credit
- Interest Rates: Principal plus (value not specified)
- Fees: None
27.Flex Lines of Credit
- Interest Rates: Principal plus (value not specified)
- Fees: None
What Lending Criteria does Synovus Have?
Below is the basic lending criteria that all the banks follow:
- Credit Score
- Annual Revenue
- Business Plan
- Collateral
- Time in Business
Credit Score
Credit is the most important component of all types of businesses, whether they are small or large. Lenders will always analyze the business's credit score and then decide whether it can pay the loan or not. Therefore, the best way to maintain a healthy credit score is to pay your dues on time.
Credit scores can also be easily obtained from several agencies such as Equifax, Dun & Bradstreet, and Experian. Another way of maintaining a positive credit score is to have a low debt-to-income ratio. Lenders will not invest in businesses that don't have a good credit score.
Annual Revenue
Another important factor that the lenders will review is the annual revenue of the business. Most lenders will only lend to those businesses that have been profitable for the last two years or more. Businesses need to make sure that all the financial statements are accurate and up to date.
Lenders will also look at specific details such as the current account (current assets divided by liabilities) and ask for copies of bank statements and transactions. However, businesses will only be eligible for a loan if their cash flow is growing.
Business Plan
A minority of lenders might not ask for a business plan, but most of them do, and businesses need to come with a clear and concise proposal. Usually, lenders require the business plan to know the purpose of the loan and discuss the business's stability.
One of the main components of business plans is the resumes of managers and staff. However, despite having a clear business proposal, the lenders will still ask for proof of the staff's ability and relevant credentials and experience.
Collateral
Collateral is an essential requirement, and most lenders will not provide a business loan if it cannot give collateral. Collateral can be anything like equipment or property. The collateral will also decrease the risk for the lender as it will have an asset in hand, so if the company fails to pay the loan, the collateral can be paid to fund the damages.
The owner of the company needs to provide a personal guarantee and will also need to submit some essential documents:
- Driver’s license
- Business license
- Tax returns (personal)
- Tax returns (business)
- Insurance plans of business
- Records for payroll
- Detail of owner
- Other financial obligations
Time in Business
Most banks are hesitant to lend loans to new companies that have been active for just a few months. Lenders cannot trust small businesses or startups that have just entered the market because they don't have a proper credit score and the cash flow is usually unstable. Banks will most likely lend to businesses that have been active for more than two years.
Synovus Application
Following is the application procedure of all the banks that borrowers have to follow:
Before you apply for a loan, ensure that all your documentation is up to date. Also, organize all the documents properly, and if some essential documents are missing, contact the relevant authorities. Collect all the financial information about your business and pay all the dues as soon as possible.
- Personal and Business credit scores and history
- Account statements of the business
- IRS documents, tax returns of the business, and the owner as well.
- Other important financial documents such as unpaid invoices, credit card details, and accounts receivable.
- Legal contracts (leasing, franchising, incorporation)
Requirements for SBA Loans
- SBA loan package application
- Business should be active for at least three years
- Submit tax returns
- A breakdown of the financial information about the business
- Detailed information regarding how the funds will be utilized
- Copy of sales, construction contracts, sales and other transactions
- For startup business: a business plan
For more information check out the website of Synovus.
Summary of Synovus Loan Options
Synovus offers a large variety of business loans, and their terms and interest rates vary. However, Synovus business loans come with a lot of benefits, and in most cases, you are also provided an expert. Unlike most banks, which at most offer 2 to 3 types of SBA loans, Synovus offers six varieties of SBA loans, all designed exclusively to fulfill the many needs of small businesses.
Below is a list of all the loans Synovus offers: