Our main focus at the moment is on getting our wholesale investment fund up and running, and we’re pleased with the response we’ve received so far. Once again, if you know of any wholesale investors looking for yield, we’d be happy to discuss this option with them.
In the meantime, we continue to see robust growth across the board. There’s no denying that these are turbulent times for business owners and small property developers looking for finance through mainstream lenders. That’s why many are finding our flexible approach more in tune with their funding requirements.
We like to be consistent and be in our clients’ corner for the long run, managing risks effectively for everyone involved. Importantly, we like to keep a cool head, knowing that where there are challenges, there are often opportunities for good business owners with a plan.
With all this in mind, read on for our latest client scenarios, and let us know if we can help any of your clients get their projects off the ground.
CASH FLOW REQUIREMENTS
Client Scenario: In the past few weeks, we have been helping several business owners with their cash flow requirements, providing them with the necessary funding to complete acquisitions and expand their business. One of these clients, a business owner in the fitness industry, was looking at setting up a new complementary operation, but due to the Covid-related risks of their industry, they couldn’t raise funds through the traditional banking sector. So, they approached the Merx team.
Merx Solution: Once we’ve assessed the feasibility of their cash flow predictions, we were able to provide a $250k business term debt loan, backed by a mortgage over their property. The three-year repayment path entails a larger payment at the end (or a ‘bullet payment’, as we call it), but we expect that over the course of the next 12 to 18 months they should be able to demonstrate a positive pattern of account conduct and financial accounts, which would allow them to refinance into a more traditional source.
SMALL PROPERTY DEVELOPMENT
Merx Solution: Last month, we continued to fund small property developments, namely stand-alone houses in good locations. While it’s always been challenging to raise funds for small development projects through mainstream lenders, it seems to be getting increasingly difficult due to a rising level of risk.
However, we have a good understanding of the risk involved and we’re happy to partner with those business owners, to get them through. We usually assess projects based on the location, with a particular focus on areas that are experiencing population growth. If you know of anyone who might benefit from our solutions, please don’t hesitate to contact us.