As 2022 winds down, now can be a good time to think strategically about the direction to pursue and the goals to attain over the long term. So here at Merx, we are starting to look ahead to 2023, with a focus on our growing wholesale investment opportunities. And of course, we are always committed to helping business owners and small property developers get their projects off the ground.
In the meantime, we have now settled into our new premises in Shortland Street (Auckland CBD), and last month we welcomed Shanell Erceg as our new analyst – you may have been in contact with her over the past few weeks. Coming from a real estate background, Shanell is taking care of all-important admin tasks so that we can spend more time with our clients and referral partners.
Looking back, there is no denying that the past couple of years have been an intense run for the business sector. But as our latest client success stories show, where there are challenges, there are also opportunities. Let us know if we can be a partner in your clients’ plans: we are here to help.
SEASONAL WORKING CAPITAL
Client Scenario: With summer just around the corner, we have recently been approached by two clients regarding their seasonal working capital funding requirements. In both instances, the pandemic has stretched their funding capacity, and it was difficult for them to raise funds through mainstream lenders in line with their cashflow requirements. So, they contacted us to remove the red tape.
Merx Solution: Both business owners have been successfully operating for a long time, and we were able to ascertain that they have a sound business strategy and the expertise to execute it. So, we decided to provide working capital facilities of $250k and $300k respectively, backed by second mortgages over their properties. This funding matches their needs and will support the step up in seasonal trade during the summer period.
Client Scenario: This client, an industrial contractor in the Bay of Plenty, needed to import new machinery from Germany to expand his business. Of course, the machine could not be delivered unless it was paid upfront, but our clients couldn’t obtain a loan through the bank due to the asset being outside of New Zealand. So, he contacted us to help him get things moving.
Merx Solution: With the help of his adviser, we were able to assess the quality of his plans, and decided to fund the purchase and import of the required high-value machinery. The client paid the deposit and we covered the remainder with a $400k loan, secured against the machine and a second mortgage against his property. The machine has now arrived and will be up and running before Christmas. The client will now be able to repay the loan by refinancing it with the local asset funder.