Over the past couple of months, in line with our expectations, we have had a significant number of repayments come through. This not only confirms that we’re making good decisions regarding the businesses we choose to back up, but it also allows us to keep funds moving and help other clients see their projects through to completion.
Despite the election year typically seeing slower business and property activity, there are always opportunities and projects emerging, and we’re happy to play our part. Read on for our latest client scenarios, and if you have clients who may benefit from our solutions, please don’t hesitate to reach out.
PROPERTY FUNDING
Client Scenario: We recently assisted two property developers who were financing their own townhouse projects through a mix of personal cash savings and equity from other properties in their portfolios. As they neared the end of their projects, however, they required additional funds to take those developments to completion, beyond what their banks were willing to offer.
Merx Solution: These clients are experienced developers with a lengthy and successful track record. Thanks to the significant progress they had made on their projects, both being at an as-completed loan-to-value ratio of less than 50%, we were able to come in and help them get across the finish line. We provided one developer with $300,000 and the other with $550,000 through our second-mortgage structure. With loan durations of three and six months respectively, these finance solutions are designed to be repaid from the sales of completed units.
WORKING CAPITAL
Client Scenario: This client, a business owner operating in a construction-related industry, required $150,000 in working capital top-up support to manage a sudden bump in demand. However, their bank was slow to respond, so they turned to us seeking a speedier solution.
Merx Solution: We assessed this client’s circumstances and were able to get to the heart of the issue quickly. We then provided them with a six-month $150,000 loan, backed by a second mortgage over their house, to be repaid once the client has their books in order. Most importantly, this short-term business loan allowed them to focus on running their business without the hassle of lengthy bank negotiations.