Cync Syndicated Lending expertly manages syndicated and participation loans, overcoming complex loan arrangements with exceptional precision to deliver unmatched operational efficiency.
Cync Software, a leading provider of cutting-edge lending solutions to banks, credit unions, and other financial institutions, today announced the launch of Cync Syndicated Lending – a cloud-native solution designed to automate servicing of both syndicated and participation loans. The highly automated solution enables lead arrangers and agents to reduce time spent on asset monitoring and participant and loan management by 75%, while also enabling analysts to handle twice as many portfolios as they navigate the complexities inherent in syndicated lending. The solution, already in the late stages of evaluation by a leading commercial bank and a prominent technology-driven credit union, is now available to all financial institutions in the U.S. starting today.
Jennifer Ballard, Director of Client Services at Cync Software, said, “Many of our asset-based lending clients are aiming to secure larger loan opportunities and higher volumes while mitigating risks in today’s high-interest environment. They’ve expressed a strong interest in entering or expanding syndicated lending. Cync Syndicated Lending is designed for financial institutions constrained by manual systems, as well as those seeking a modern solution to enter this lucrative market.”
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Designed by experienced finance professionals familiar with struggles of lead arrangers and agents, Cync Syndicated Lending will deliver the following benefits:
- Effortlessly Manage Complex Syndicated and Participation Loans: Cync Syndicated Lending allows lenders to effortlessly manage both syndicated and participation loans. Additionally, the solution facilitates assigning different interest rates, fees, maturities, or covenants to each participant allocation, to address specific financing needs and varied risk appetites.
- Provide Multiple Allocation Methods and Flexible Drawdown Options: Cync Syndicated Lending offers a choice between a percentage-based method and a flexible, dynamic continuous priority system for prioritizing participant allocations. It also provides options for full drawdowns, scheduled drawdowns, bridge drawdowns, revolving credit facilities, or discretionary drawdowns linked to specific events or milestones, facilitating effective cash flow management for borrowers.
- Streamline Participant Restructuring: Cync Syndicated Lending adeptly manages changes when lenders reduce their exposure, exit, or new lenders join the syndicate. The solution enables seamless adjustments to loan terms—such as interest rates, repayment schedules, and covenants—accommodating these changes efficiently without the need for spreadsheets.
- Improve Productivity With Advanced Automation: Cync Syndicated Lending leverages automation to optimize fund allocations and repayments, manage drawdowns and loan modifications, ensure covenant compliance, and perform real-time risk assessments. It also automates document management with advanced metadata tagging and improves participant communication through automated updates and notifications.
- Monitor Every Kind of Collateral, Including Marketable Securities: Cync Syndicated Lending evaluates diverse collateral types such as accounts receivable, inventory, real estate, equipment, government contracts (GovCon), and agricultural assets, and automates the generation of Borrowing Base Certificates (BBC). The solution ensures transparency by communicating collateral valuations to each participant according to their participation ratio, promoting clarity and equitable information sharing.
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