Our simplified approach to small development funding

Let us tell you a bit more about the Merx difference when it comes to funding small development projects.
Our simplified approach

In May, we started talking about how we help small property developers get to the finish line. As residential property remains a key talking point across New Zealand, we’d like to tell you a little bit more about the Merx difference when it comes to funding small development projects.

Whenever we work with a client, we approach finance as a tool for success – not just debt for debt’s sake. This means we assess any project on its own realistic criteria, such as the potential value on completion and the client’s ability to deliver on the project. 

When it comes to small property developments, our lending experience enables us to provide fast answers and a smart structure suited to the developers’ requirements. We know that seeking funding through mainstream lenders can be difficult for smaller operators, so we offer a simplified, fit-for-purpose approach. 

Our simplified approach in a snapshot

  • We assess finance applications on a project basis, relying on completed value.
  • We generally don’t require a quantity surveyor valuation or independent valuation report.
  • We generally don’t require pre-sales on any of the units (provided we’re happy with the quality of the project and its location).
  • We release cost-to-complete funding upon simple, agreed milestones (e.g. slab down, framing up, closed in, etc.).

This is the Merx difference – simplified, efficient, tailored to the needs of good businesses looking for the next opportunity. Call us on 09 215 9364 to discuss this further.


Client Scenario: This client was looking at purchasing land in South Auckland, to proceed with the building of six townhouses. Seeking funding through mainstream lenders would have entailed a lengthy and more complex finance approach, so the client – who had worked with us in the past and knew how we operate – decided to contact us first to take his project forward.

Merx Solution: As we detailed in our article this month, our approach is tailored to the needs of smaller property developers looking for simplified, cost-to-complete funding solutions taking a project through to completion. Following our assessment of the quality of the project, we were able to provide funding to purchase the land at 60% LVR and then $2.2 million to progress the project. On completion of the project, the LVR will be under 60%. The interest rate on this particular project was 7.99%, with fees on top of that. Thanks to our funding support, this small property development is now underway.


Client Scenario: Here is another return client, active in the construction sector and looking at making an investment in his existing business to fund some growth. In light of our previous experience working together, this client knew he could trust us to structure the right loan to fit his requirement and act quickly to take advantage of a time-critical opportunity.

Merx Solution: Having helped this client before, we were confident in their business and ability to get things done. After reviewing their new project, we were able to provide a short-term $150k loan at 70% LVR and 14.99% interest rate, secured by a second mortgage over their existing property. The loan is set to be repaid within three months, upon the sale of one of the properties in their portfolio.

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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