CLIENT SCENARIO #1
Why did this client need our funding: Bridging finance to help a property investor who needed access to equity tied up in their long-term investment portfolio to support a refinance of another portion of their portfolio from an expensive short-term funding arrangement.
Amount: $150,000
Industry: Property investment
Location: Waikato / Auckland
LVR: 65%
Type of security: Second mortgage (caveat) over commercial and residential investment property.
Path to repayment: Sale of residential property.
Why Merx: We were able to quickly determine a path to servicing and repayment of our loan. We provided funding approval within 24 hours and had funds available for the borrower within the week, which enabled them to take advantage of a significantly cheaper overall funding package being offered.
CLIENT SCENARIO #2
Why did this client need our funding: Business funding to help a national import / wholesale and online retail business refinance some very expensive, poorly structured business debt and provide further funding to support working capital into the summer season.
Amount: $175,000
Industry: Import / wholesale and online retail
Location: Christchurch – nationwide
LVR: 70%
Type of security: Business assets and second mortgage (caveat) over residential property.
Path to repayment: Regular monthly payments from business cashflow.
Why Merx: We were quickly able to understand the client’s business and their seasonal funding requirement. The previous business funding arrangement was draining all of the surplus cash from this profitable business and they needed a better structure. Merx was able to provide that.
CLIENT SCENARIO #3
Why did this client need our funding: Homebuilder client had contracted the purchase of a residential section on builders terms and nearly completed the residential home project on the site. They needed to settle the purchase of the section and complete the housebuilding project in order to sell the project, bank a profit and move onto the next. Their bank had determined the construction industry too risky for them to be able to help at the moment. Without a funders support, this client would have been unable to settle on their section purchase and lost hundreds of thousands of dollars they had already invested into the site.
Amount: $750,000
Industry: Residential spec house development
Location: Auckland
LVR: 60%
Type of security: First mortgage over residential property.
Path to repayment: Complete the build project and sell the completed house.
Why Merx: Leveraging our experience, we were able to quickly determine the value of the work invested in the site by the client, and get comfortable with the builders compliance and estimated cost to complete the project. We could rely on the completed value of the project to support our risk position.