Client Scenario: Business expansion
Why did this client need our funding: Funding needed to expand the presence of a retail business. They identified strategic locations that promised a good influx of foot traffic and an opportunity to reach new markets. However, despite their clear plans and a track record of success in their existing location, the bank was hesitant to support them.
Amount: $150,000
Industry: Retail business
Location: Auckland
LVR: 70%
Type of security: Business assets and second mortgage over residential property.
Path to repayment: Increased business cashflow to repay the loan over time.
Why Merx: Recognising the potential in their plans and the good trading base they already have, we stepped in to bridge the gap by providing a tailored solution, enabling the business owner to secure new locations and roll out the expansion.
Client Scenario: Business purchase funding
Why did this client need our funding: Acquiring a business, supported by client’s family trust. But despite having a history of income generation and a plan to fund the purchase through the sale of commercial properties, their bank hesitated due to the venture being a new business, and thus, outside their comfort zone. Caught up in a lengthy approval process, this client reached out to Merx for a faster outcome.
Amount: $200,000
Industry: Commercial property investment
Location: Auckland
LVR: 35%
Type of security: First mortgage over commercial property
Path to repayment: Generate steady cashflow through new business operations then refinance into main bank.
Why Merx: We assessed and recognised a promising opportunity. Thanks to the quality of their plan and a very low LVR, we confirmed a $200k loan within just a day, and the client was able to access the funds by the end of the week, keeping their business purchase plans on track.
Client Scenario: Simplified project funding
Why did this client need our funding: Funding needed to complete a small residential townhouse project. This client felt their bank was tying them up in excessive red tape, so they approached Merx for a solution.
Amount: $1,500,000
Industry: Property development
Location: Auckland
LVR: 55% on completion
Type of security: First mortgage on the new townhouse development and second mortgage security on the broader portfolio.
Path to repayment: Refinance once the investment units are complete and rented.
Why Merx: The client’s bank were looking to impose the same conditions you’d expect for funding a $50 million project, i.e., pre-sales, full quantity surveyor review and monitoring, etc. We provided a more pragmatic approach – Simplified Project Funding – advancing funds on a progressive basis so this experienced property owner could get moving.
Client Scenario: Asset import finance
Why did this client need our funding: A construction service provider was considering upgrading their machinery by importing new drilling equipment. Despite having a clear vision of how this equipment could elevate their business, their bank would only provide funding once the machine was already in New Zealand and operational.
Amount: $420,000
Industry: Construction service provider
Location: Bay of Plenty
LVR: 75%
Type of security: Second mortgage over the client’s house.
Path to repayment: Refinance of asset once landed in New Zealand and operational.
Why Merx: Spotting the potential for this business owner to further grow their business, we offered an outside-the-box solution. We provided a loan based on the value of the incoming machine, backed by a second mortgage over the client’s local property. This helped bridge the two-month gap required for the machine’s arrival and setup, after which they were able to refinance with their bank as planned. Thanks to the new equipment, they have enjoyed a 30% increase in their annual revenues.
Note: This article is intended to provide general information and does not constitute financial advice. We recommend you speak with a financial adviser for advice tailored to your individual circumstances.