Funding support for seasonal and commercial property needs

Client Success

30 Oct

Author

Andrew
Dunning

BRIDGING FINANCE

Client Scenario: This client, a business owner, needed working capital to turn around one of their main lines of business and get ahead of seasonal trading. They had unintentionally stressed their business cashflow by withdrawing a substantial amount of money for a property development project. However, the development took longer to complete and cost more than the client had anticipated, leaving them with limited liquidity to keep their operations running.

Merx Solution: Having extensive experience with hybrid property and business financing scenarios, we were able to provide this client with a bridging finance loan of $500k to support their working capital requirements.

This was secured by a second mortgage over the completed property development, to be repaid over the next six months from the sale of the property. The terms of the loan also allowed them to pay interest monthly at a slightly lower rate of 14.99%. Thanks to this structure, the client will be able to stabilise their cash flow and take full advantage of the seasonal growth opportunities.

COMMERCIAL PROPERTY FUNDING

Client Scenario: Over the past few months, we worked with two different clients facing similar challenges in acquiring commercial industrial investment assets. They both had identified small vacant units and had plans to refurbish and either re-tenant or sell them. However, as it often happens with this type of projects, their needs were too complex for a retail business bank, yet the size of their operations was too small for wholesale banking – leaving them in a funding gap.

Merx Solution: Once we had thoroughly assessed the quality of their plans, we stepped in to provide a solution tailored to their unique situation. We facilitated loans of $2 million and $1 million respectively, at under-60% LVR, helping them acquire the well-located industrial properties they had their eyes on. The nine-month term on the loans will give them enough time to execute their plans for the property and arrange for refinancing once they had secured a lease.