CLIENT SCENARIO #1
Why did this client need our funding: This client was referred to us by their accountant. They needed working capital to support this business through the Christmas period and prepare for 2025. We like it when business clients and their advisers are well-prepared as they head into a new period.
Their existing bank funding was too restrictive to accommodate the anticipated growth in 2025. Although they had initiated promising discussions with another bank, those negotiations were unlikely to conclude before the Christmas break. To bridge the gap, they required short-term funding to navigate the holiday season and position themselves for the restructured funding expected to begin in early 2025.
Amount: $600,000
Industry: Professional services
Location: Auckland and nationwide
LVR: 70%
Type of security: General security over the business, plus second mortgage over their investment property.
Path to repayment: Servicing the debt through business cash flow with a likely refinance in early 2025.
Why Merx: This client appreciated our prompt response, understanding of their situation, and flexibility in structuring a solution tailored to their actual business funding needs. This contrasted with the rigid, rule-based funding structure of their existing bank. We quickly identified the client’s requirements and devised a funding arrangement that effectively supported them through the short-term period.
CLIENT SCENARIO #2
Why did this client need our funding: This client had recently completed a townhouse development in Auckland and was nearing settlement on sale contracts, with additional conditional contracts in place for other units. Their current lender was rigid and wanted repayment before the Christmas break.
We quickly assessed the property’s value and confirmed it was sufficient to secure our advance. We also understood the client’s situation, recognising that private lenders often have competing demands for their funds and expect timely repayment according to agreed schedules.
Amount: $1.35 million
Industry: Property development
Location: Auckland
LVR: 70%
Type of security: Settlement of conditional presale agreements or resale in the market.
Path to repayment: Residual townhouse development stock.
Why Merx: We quickly confirmed that the property project was fully completed, with all necessary certificates and compliance requirements in place. After reviewing the sale contracts and visiting the property, we were able to act promptly to resolve the client’s issue.
CLIENT SCENARIO #3
Why did this client need our funding: This high-net-worth individual held various investment assets in New Zealand but had limited local cash flow, with income primarily derived from offshore sources. This posed challenges for traditional banks in assessing their ability to service and repay debts. We took the time to understand and document the client’s offshore income and the quality of their New Zealand investment assets. This allowed us to provide the funding they needed to access the equity in these assets and pursue further investment opportunities.
Amount: $150,000
Industry: Property investment
Location: Auckland
LVR: < 50%
Type of security: First mortgage over residential investment property.
Path to repayment: Funds being brought back to New Zealand from their offshore investments, or realisation of New Zealand domiciled property investment assets.
Why Merx: We quickly understood the client’s situation and the specific funding they required. Relying on their proven track record of generating income and investment returns both in New Zealand and internationally, we implemented a straightforward structure to meet their needs. This no-fuss approach provided the funding necessary to capitalise on upcoming opportunities.