BUSINESS OWNERS
Term-Debt Funding: A retailer, who was planning to expand their business into new premises, needed to raise funding to complete the fit-outs of their new location. Looking at our clients’ plans and projected returns, we were able to confirm that the business was profitable and poised for growth. We then funded $50,000 to repay over a term of two years, secured by general security over the business and a second mortgage over the Director’s personal property. Click here to learn more.
Working Capital: Lumpy cashflow, either due to the nature of the business or external challenges, can make it difficult to get business finance through mainstream lenders. Over the past few months, we helped a number of clients raise funds to support their business operations in this uncertain environment. One of these clients, active in transport and logistics, was unable to operate during Alert Level 4 and needed extra funding to get through the lockdown period. In that case, we were able to provide them with a $100k boost to their working capital funding, at approximately 60 per cent loan-to-value ratio against Auckland property. Click here to learn more.
Bridging finance: Last year, we were approached by a client looking at selling one hospitality business and buy another. However, due to Covid-19 and the perceived risk around the sector, the banks were reluctant to provide the required funds to settle the purchase. Based on their proven track record and recovering trading performance after lockdown, we were able to provide the $400k loan they needed, secured by GSA over their business and a second mortgage over their property. Click here to learn more.
INVESTORS
Equity Release: Equity release has been a significant part of the Merx business in the past few months. A lack of liquidity in certain sectors has been preventing some business owners from realising their potential, despite having equity available in their property portfolios or business assets.
As an example, we’ve helped an investor who was looking to diversify his business portfolio by purchasing a retail venture selling essential items. They need funding to settle the new business purchase. However, despite having equity in property, their bank was reluctant to take on the risk due to the lack of immediate and certain cash. Based on their stable and realistic projections, we granted them a $400k loan at 75 per cent loan-to-value ratio, secured against an existing property portfolio. Click here to learn more.
PROPERTY DEVELOPERS
First-mortgage funding: Our recently-launched first-mortgage funding packages are a cleaner, easier solution that property developers have been finding effective. One of the first clients we helped in this space needed to settle the acquisition of a new plot of land, and also raise funds to complete a construction project that was already underway. Mainstream lenders were reluctant to step in due to a lack of pre-sales on the development project. Rather than considering the two projects separately, we looked at the client’s portfolio of work in its entirety and decided to fund a total of $1.5 million at 50 per cent LVR to support their pipeline. Click here to learn more.
Fast turnaround: While fast solutions are welcome for any type of business, time is certainly of the essence for some property developers. Often their operations fall outside of the strict criteria for mainstream lending. One of our clients needed finance to fund the refurbishment of two properties in their existing portfolio. However, the bank was reluctant to lend them the extra money they required, and the approval process was taking longer than they had expected. Within a few days, we confirmed that their cashflow and project plans were solid and granted the $200k loan they required, secured by second mortgages over their properties. Click here to learn more.