Lending with an eye on the exit

Recently, we had the pleasure of working with a client who faced a difficult situation.
Lending with an eye on the exit

Running a business can be an exciting and fulfilling journey, but it can also come with its fair share of challenges. However, at Merx, we believe that with the right support and resources, good business owners can overcome their obstacles and thrive. 

We take great pride in our personalised approach to lending, carefully assessing each client’s unique circumstances to provide well-structured solutions that meet their immediate needs and set them up for long-term success.

Recently, we had the pleasure of working with a client who faced a difficult situation. With our expertise and flexibility, they were able to ride out a rough patch and emerge even stronger. We get a kick out of seeing our clients achieve their goals: it is nice to be a part of their success stories.

If you have any clients who may benefit from our solutions, please reach out. We look forward to helping them on their journey.

CASE STUDY OF THE MONTH

Before Covid-19, we helped this client purchase a business that was complementary to their existing business. They had a quality plan and fundamentals looked good. We provided acquisition funding of $400,000 secured by second mortgages over several property assets in their group.

Unfortunately, when the pandemic started, the business cashflow was severely impacted. It became hard to meet the repayment schedule initially agreed upon.

With all our clients, we are always looking for a path to repayment, “keeping an eye on the exit” as we describe it. We also acknowledge that, sometimes, these plans need to change. So, in this case, we had to take a more flexible approach to working with the client to provide an amended repayment arrangement.  We took a longer-term view and provided them with an extended interest-only term before their repayment plan kicked in.

Last month, this client has moved back into a mainstream bank funding arrangement. They now have a profitable business in their stable of investments, and a long-term, cheaper bank funding solution. 

What our client says

“The help we received from Merx has been an absolute game-changer for our business. When we needed financing for a critical acquisition, the bank was not willing to take the risk. But the team at Merx took the time to really understand our vision. What’s more, they provided an outstanding level of support and personalised service, knowing that we were putting our own equity on the line. We couldn’t be happier with the outcome.”


Give us a call on 09 215 9364 or email us at fundgrowth@merx.co.nz if you’d like to set up a time to talk.

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