Introducing our new pre-development funding package

In recent months, our pre-development funding package has received great interest and response from small property developers looking at getting their projects in motion.
Our cookie-cutter package for pre-development funding (1)

In this update, we are focusing on our new and very popular pre-development funding package. Plus, we would like to acknowledge the great work that our adviser partners are doing for the sector. We are seeing some amazing effort being put in my advisers in our network, helping clients navigate a difficult funding environment and getting access to more suitable, out-of-the-box solutions. It’s this collaborative approach that enables the New Zealand business ecosystem to remain healthy and dynamic.

What has become increasingly clear in recent weeks is that small business owners are finding it quite challenging to raise funds through mainstream lenders. Lending criteria keep getting harder to fulfill and the whole process seems to be taking far longer than it should. This is leaving business owners and small property developers stuck at the starting gate.

As our latest client scenarios show, businesses continue to approach us looking for more certainty in their planning, and we are able to deliver the swift decisions they needed. Please contact us if we can help any of your clients get ahead of the opportunities ahead of them.

A simple and efficient package for pre-development funding

In recent months, our pre-development funding package has received great interest and response from small property developers looking at getting their projects in motion.

This package is simple, straightforward, and effective from a developer’s standpoint. When paired with core debt from a main bank, the overall cost of funding is very efficient for our clients also.

Our package in a snapshot

* LVR under 70 per cent on the as-is value of the property.
* Fast funding of either $50k or $100k towards pre-development costs (e.g., planning, design, and engineering), to be repaid in six months.
* Affordable second mortgage interest rate of 7.99 per cent.
* The upfront fee is either $2,000 (for the $50k facility) or $4,000 (for the $100k) facility and a monthly commitment charge of either $150 or $250 * month.
* All interest, fees and costs capitalised to the loan.

Additionally, one of the key benefits of this solution is that clients also get to pick up our expertise. At the end of the six-month period, they should be in a position to have a well-articulated, well-organised project ready for funding – either by us or a mainstream lender.

Like to learn more? 
Please don’t hesitate to contact us: we’re here for your questions.


Client Scenario: This client was looking at developing six units in a popular Auckland suburb. However, their bank was reluctant to provide the pre-development funding they required to get their project moving.

Merx Solution: Being under 70 per cent LVR on their property, and with a sound development project idea in the pipeline, this client was eligible for our pre-development funding package. So, we were able to provide the funds they needed to get design and consents rolling, and finally move their project beyond the starting blocks.


Client Scenario: This client was looking at releasing some equity from an existing property to fund the deposit on a property investment that they wanted to make. Despite being at 60 per cent loan-to-value ratio, they couldn’t raise the money through the bank, due to the bank not accepting cashflow from the future investment in support of servicing the loan in the medium term.

Merx Solution: Unlike mainstream lenders, we were able to base our funding decision on the expected income to be generated from the investment. We could see this was likely to work for our client and provided a $150k second mortgage funding facility to be repaid within nine months. This allowed the client to release the necessary equity from their property and move forward with the investment.

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