PROPERTY FINANCE
Client Scenario: This property investor was looking for funding to refurbish an investment property they had acquired and maximise their opportunity in the market. However, he was unable to secure the funds through mainstream lending on the sole basis of the property’s projected value.
Merx Solution: We assessed the quality of the investment property and found that, due to its location and characteristics, it has the potential to deliver healthy ROI once the refurbishment work has been completed. On this basis, we offered a $150k loan at 60 per cent LVR, to be repaid upon the sale of the property.
WORKING CAPITAL
Client Scenario: Recently, we have been approached by a client who was dealing with a difficult financial situation in the current environment. Under mainstream lending requirements, he was struggling to raise the funds needed to support his business operations and was looking for an alternative finance solution. We were able to provide an additional line of credit.
Merx Solution: Once again, our ability to assess our clients’ plans from a broader perspective allowed us to determine that, with some support, their business operations are likely to be profitable. We identified that their contracts will continue during the lockdown period, with solid potential for them to increase afterward.
Based on this assessment, we’ve supported this client with an $80k working capital facility at 50 per cent LVR, secured with a second mortgage on their existing properties and a GSA over their business.