Over the past few weeks, we’ve been busy building momentum for 2021, with new business coming in and wholesale investors taking advantage of direct investment in our business loans.
Just a short year ago, we couldn’t have foreseen the challenges that the business sector would encounter in 2020. But there have also been ‘silver linings’ and opportunities along the way.
After its remarkable 2020 performance, there’s confidence in the property market. We’ve seen most of our business-owner clients weather unprecedented circumstances, proving resilient and strong. And we’ve opened the door to new avenues of opportunities to take our vision forward, and help good business owners realise theirs.
We’d like to thank you and everyone in our community for your help this year, and wish you a relaxing break with your loved ones.
FAST TURN-AROUND
Client Scenario: This client – a retail business owner and property investor – needed funding to settle the purchase of an investment property that they had already contracted.
However, the client found the process of raising funds through the bank too slow for their requirements. Also, they required a high-LVR loan of 80 per cent; 10 per cent higher than what the bank was willing to lend under their current investor loan policies. With the settlement date fast-approaching, and still no documentation from the bank, the client contacted us to put the project on the fast lane.
Merx Solution: Thanks to the flexibility of Merx solutions, we’re set up to help those clients who have out-of-the-box circumstances more efficiently than most mainstream lenders. Despite Covid-19 and lockdowns, we were able to confirm that the client’s business was viable, with trading for the year-to-date even more positive than last year.
We provided the required $1.1 million loan at 80 per cent LVR lending, guaranteed by their business. Over the next six months, they will focus on making the most of their peak trading season and tidying up their financial reporting, to get things in line for refinance.
IMPORT FINANCE
Client Scenario: This client, an importer and on-the-field support business in the transport industry, needed to import machinery from Australia. Despite being approved for finance here in New Zealand, these funds will only pay for the machinery when on New Zealand ground. So the client needed funding to pay the supplier and import the goods, and approached us to get things on the move.
Merx Solution: We helped our client resolve their Catch-22 situation by providing $260k input finance for them, secured over the machine, guaranteed by the business owners, and backed by the equity in their house. The client will repay the funding once the machinery is here and installed, using their already-approved asset finance funding facility.