Our thoughts and sympathy go out to all those impacted by the recent weather events. We hope you are well and can navigate through the impact peacefully.
As the last few weeks of summer slip by, we are well underway supporting business owners and property professionals with a combination of business acquisition, working capital funding, property bridging finance and construction projects.
In the meantime, the Merx Wholesale 1 PIE Trust is seeing good growth. We are looking for further wholesale investor partners interested in joining us on this journey and partnering with us to enable progress for local business owners and property professionals. If you would like to learn more, please get in touch.
2023 is shaping up to be another intense year, including the recent changes in Government and the general elections in October. How are you feeling about it? Are you delaying making important decisions until after the vote, as it’s often the case in election years?
In our view, regardless of the uncertainties in the environment, there will still be commercial activity happening and business owners looking at turning their plans into action. We want to continue to do our part in supporting them. Read our client success stories below and please let us know if we can assist any of your clients.
FIRST-MORTGAGE BRIDGING FINANCE
Client Scenario: This Auckland-based client was looking at taking advantage of a new property investment opportunity. However, they could not raise the necessary funds through mainstream lenders, so they approached us to enquire about our bridging finance options.
Merx Solution: After assessing the client’s circumstances and goals, we were able to ascertain the quality of their plan and their commitment to a path to repayment. On this basis, we funded a $2 million bridging finance loan at 60% loan-to-value ratio, secured against two properties. This allowed our client to acquire the new property before they sold the existing property.
SEASONAL WORKING CAPITAL
Client Scenario: Another client, a business owner, needed seasonal working capital to keep their business running smoothly during the busy summer period. However, the process of getting funding through a mainstream lender was taking longer than the business could sustain, so they contacted us to get things moving faster.
Merx Solution: This client scenario is a typical example of the difference that receiving a quick response can make, when business is involved. Following our assessment, we confirmed that the client was under 70% loan-to-value ratio on their property. This and their plans gave us confidence in their ability to take the risk, with our financial backing. So, we funded the required $150,000 to support their cashflow through the January-February period. The three-month working capital funding facility is provided on a revolving basis, secured by a second mortgage over their property.