CLIENT SCENARIO
Business acquisition
Why did this client need our funding: The client’s bank pulled out at the last minute ahead of a business acquisition, leaving a crucial funding gap despite significant equity contribution.
Amount: $600,000 (approximately one-third of the purchase price)
Industry: Business acquisition and investment
Location: Auckland
LVR: No property security – funded against business cashflow at less than 1x EBIT
Type of security: Business assets and cashflow
Path to repayment: Servicing and repayment through the operating cashflow of the client’s businesses
Why Merx: We delivered certainty and speed, approving and funding within two days when the client’s bank fell short. Our flexible approach, based on understanding the owner’s track record and cashflow strength, enabled the acquisition to proceed without delay.
CLIENT SCENARIO
Seasonal working capital
Why did this client need our funding: To build up stock ahead of the Christmas and summer trading period.
Amount: $100,000
Industry: Seasonal retail/wholesale
Location: Auckland
LVR: < 75%
Type of security: Second mortgage over residential property
Path to repayment: Seasonal trading revenue from Christmas and summer sales, repaying through business cashflow
Why Merx: We’ve supported this client for years with debt restructuring and seasonal working capital. Our quick understanding of their business meant approval was done over the phone – fast, flexible, and tailored funding based on trust and a long-term relationship.
CLIENT SCENARIO
Project finance approach for smaller value projects
Why did this client need our funding: A property trader wanting to complete a renovation project found the approach from their bank too restrictive, as their bank would fund only 60% of the purchase price. They needed fast, flexible finance to get their project moving without tying up all their capital.
Amount: $1.2m
Industry: Property development/residential trading
Location: Auckland
LVR: 70% on completion value (up to 90% of total project costs including land)
Type of security: First mortgage over the development site
Path to repayment: Sale of completed dwelling
Why Merx: The client’s bank was not interested in considering the potential of the project. Merx quickly structured funding around the project’s completed value and got the project moving. The clear strategy and strong controls in place meant we could back the deal confidently, enabling this client to trade quickly, “bank a profit” and make progress.
CLIENT SCENARIO
Moving beyond the red tape
Why did this client need our funding: An experienced property developer and business owner, required funding to unlock the final phase of a project before the bank would release funds. With all available equity tied up in other ventures, urgent access to capital was needed to complete construction and pay for connections to realise profits. Delays were getting expensive.
Amount: $300,000
Industry: Property development/business equity release
Location: Auckland
LVR: 70%
Type of security: Second mortgage over development project and general security over business assets
Path to repayment: Sale of completed units, with settlements pre-arranged for the project’s final stage
Why Merx: We could assess the developer’s broader position and project risks, and progress with compliance, enabling a fast, practical solution where their traditional funders’ bureaucracy caused delay. Our holistic approach meant equity was unlocked quickly, without stress, allowing the developer to focus on turning effort into profit.