It’s been an active few months here at Merx, with a number of repayments coming through. This is not just a positive signal of businesses pushing forward and pursuing their growth plans. It’s also a rewarding reminder for us of the part we’ve played in these success stories.
As we see repayments, it opens the doors to further opportunities. We’re looking forward to discussing new possibilities to help business owners and property developers alike push ahead with their plans. As always, please don’t hesitate to contact us if we can assist your clients in any way.
BUSINESS PURCHASE FUNDING
Client Scenario: This client, supported by his family trust, was considering acquiring a business. But despite having a history of income generation and a plan to fund the purchase through the sale of commercial properties, their mainstream 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 us for a faster outcome.
Merx Solution: We assessed the client’s situation and recognised a promising opportunity, thanks to the quality of their plan and a very low LVR at 45%. Within just a day, we confirmed a $200k second-mortgage loan and the client was able to access the funds by the end of the week, keeping their business purchase plan on track.
FIRST-MORTGAGE FUNDING
Client Scenario: This client aimed to fund a small property development project – four units in Christchurch – without pre-sales. However, their mainstream bank considered it “specialised property funding” and was reluctant to provide additional funds to complete the project. So, this client approached us looking for a solution.
Merx Solution: Based on our assessment of the market, as well as the small-size nature and high-quality location of the project, we were confident to provide $1 million first-mortgage funding at 55% LVR upon completion. In our decision, we also considered the client’s second mortgage security on another property. Once again, this is an example of a project falling outside the box for traditional lenders, made possible thanks to our flexible approach and understanding of market risk.