CASH FLOW REQUIREMENTS

Client Scenario: In the past few weeks, we have been helping several business owners with their cash flow requirements, providing them with the necessary funding to complete acquisitions and expand their business. One of these clients, a business owner in the fitness industry, was looking at setting up a new complementary operation, but due to the Covid-related risks of their industry, they couldn’t raise funds through the traditional banking sector. So, they approached the Merx team.

Merx Solution: Once we’ve assessed the feasibility of their cash flow predictions, we were able to provide a $250k business term debt loan, backed by a mortgage over their property. The three-year repayment path entails a larger payment at the end (or a ‘bullet payment’, as we call it), but we expect that over the course of the next 12 to 18 months they should be able to demonstrate a positive pattern of account conduct and financial accounts, which would allow them to refinance into a more traditional source.

SMALL PROPERTY DEVELOPMENT

Merx Solution: Last month, we continued to fund small property developments, namely stand-alone houses in good locations. While it’s always been challenging to raise funds for small development projects through mainstream lenders, it seems to be getting increasingly difficult due to a rising level of risk.

However, we have a good understanding of the risk involved and we’re happy to partner with those business owners, to get them through. We usually assess projects based on the location, with a particular focus on areas that are experiencing population growth. If you know of anyone who might benefit from our solutions, please don’t hesitate to contact us.