Infometrics recently published interesting statistics on how the quarterly production GDP by industry changed between December 2019 and December 2022. While six industries were smaller at the end of 2022 than at the end of 2019, many grew significantly since the pandemic started.
As we navigate the ever-changing economic landscape, this data confirms that amid the challenges there’s always some growth. Here at Merx, we still see valuable opportunities ahead and we are committed to helping business owners and property professionals seize them.
Read on for our latest client scenarios, and if you have any clients who may benefit from our solutions, please reach out. We look forward to helping them on their journey.
Client Scenario: Two different property developers recently approached us for assistance with their ongoing townhouse projects. They required additional funds to cover cost overruns and bring their project to completion. However, the process of getting funding through their banks was taking longer than anticipated, causing delays. So, they turned to us for a swift and efficient solution.
Merx Solution: After carefully evaluating their portfolios and financial requirements, we were able to offer each of them second mortgage-backed equity releases of $200,000 and $300,000 respectively. The loans were relatively short-term, with one being for three months and the other for six months, and featured fees and interest capitalized to the loans. The loans were to be repaid from the projected sale of their development stock. As a result, the developers were able to finish their projects, settle their sale contracts, and pay off their debts in a timely manner.
BUSINESS WORKING CAPITAL
Client Scenario: This client, a business owner, required working capital to support their company’s growth as they had secured new contracts in March. However, their bank was unable to provide the necessary certainty and quick answers, so they sought our help to obtain the funding they needed to manage their cash flow over the next few months.
Merx Solution: As per our application processes, we thoroughly reviewed the business’s financial situation, work projections, and potential profits from their new contracts. Once we determined that they could benefit from our support, we provided a $100,000 loan backed by a second mortgage over the business owner’s property. The repayment structure is designed to align with their cash flow projections, and will allow them to pay off the loan over the next six months from their improved cash flow.