Welcome back! We hope your holiday break was refreshing and that you are ready to embrace all that 2024 has in store for the business sector.
We are all back on board and ready to focus on the opportunities ahead. To get things moving and remind you of the kind of out-of-the-box support we can offer your clients, this month we are sharing a couple of case studies from the past year.
As always, if you know any business owners or property professionals in need of smart funding to get ahead, we are just a call away.
SEASONAL WORKING CAPITAL
Client Scenario: One of our clients, a business owner, was in urgent need of working capital to navigate through the high-demand summer season. However, the traditional lending route was proving too slow for their immediate requirements, leading them to seek a more suitable solution.
Merx Solution: For many business owners, being able to receive a rapid response can make the difference between seizing a market opportunity and missing it entirely. This is where Merx steps in. Following our assessment, we confirmed that the client was under 70% loan-to-value ratio on their property. This and their plans gave us confidence in their ability to take the risk, with our financial backing. So, we funded the required $150,000 to support their cashflow through the January-February period. The three-month working capital funding facility was provided on a revolving basis, secured by a second mortgage over their property.
CONSTRUCTION PROJECT FINANCE
Client Scenario: This property developer was nearing completion of a townhouse project. As is often the case, they encountered time and cost overruns and needed additional funds to complete the property development. Their bank was taking a long time to consider their funding request (we think it was a long “No” coming). So, they contacted us for assistance.
Merx Solution: We know construction project finance. After a thorough and fast evaluation of their project, we were able to provide this client with timely equity release funding of $300,000, backed by second mortgage on their broader portfolio. The short-term loan, spanning six months, included capitalised fees and interest, and we lined up servicing and repayment of the loan with the planned sale of a property. It’s a clear example of how our out-of-the-box approach can help property developers complete their projects and get onto the next undertaking in a timely manner.