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.