Merx Lending Scenarios | April 2024

Merx specialises in providing tailored financial solutions for business owners across diverse range of industries, and property developers. Below is another snapshot of some of the great businesses and projects we’ve enjoyed working with recently.
Businesspeople shaking hands after meeting in board room. Businessman shaking hands with female in conference room at office.

CLIENT SCENARIO #1

Why did this client need our funding: Business owner, undertaking a restructure in their business. Needed funds to meet restructure costs and fund working capital. Bank too slow and not supportive. We provided a quick response and clear commitment to fund.

Amount: $500,000

Industry: Building materials and trade

Location: Auckland

LVR: 56%

Type of security: Business assets and second mortgage over residential property

Path to repayment: Sale of residential property assets.


CLIENT SCENARIO #2

Why did this client need our funding: Property investor needed funding to complete renovation project on investment property and pay last outstanding bills to contractors. Had otherwise funded from cash equity. Bank was not interested given LVR over 65%. We understood the broader situation and provided the certainty this client needed to finish their project.

Amount: $250,000

Industry: Residential property investor

Location: Bay of Plenty and Auckland

LVR: 75%

Type of security: Second mortgage over residential property investment assets

Path to repayment: Rental income and business income to pay interest in the short term.

Sale of investment assets to repay.


CLIENT SCENARIO #3

Why did this client need our funding: Business owner breeding livestock for sale. Needed working capital and capex funding for the business. Client wanted to get on with the project and didn’t want to endure the Bank’s long approval process. We provided a quick response and clear commitment to support.

Amount: $200,000

Industry: Breeding livestock for sale

Location: South Auckland

LVR: 10%

Type of security: First mortgage over farm property

Path to repayment: Cashflow from business and likely refinance to main bank once track record

is established.


CLIENT SCENARIO #4

Why did this client need our funding: Business owner expanding operations. Needed funds to fit out a new premises. Bank didn’t want to rely on forecast profits for servicing and repayment of the loan. We understood the investment proposal and backed our client’s plan. 

Amount: $250,000

Industry: Fitness

Location: Auckland

LVR: 50%

Type of security: First mortgage over industrial property

Path to repayment: Business cashflow and likely refinance to main bank once track record is established.


CLIENT SCENARIO #5

Why did this client need our funding: Property investor saw an opportunity to acquire a very good investment asset, excellent location and at a great price. Needed to move quickly to secure the deal. Experience had suggested their Bank would be too slow. We provided a quick commitment and certainty to the client so they could transact with confidence.

Amount: $1,240,000

Industry: Residential property investment

Location: Bay of Plenty

LVR: 55%

Type of security: First mortgage over residential investment property

Path to repayment: Refurbish, re-tenant and likely refinance on completion.


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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