FIT FOR PURPOSE FINANCE
Client Scenario: An experienced operator with existing businesses in the fitness industry, this client was seeking finance for fit-out and establishment costs to get a new location up and running. While our client has strong historical financials and a track record of proven growth, their bank was unable to lend based on projected future profit, so they approached Merx.
Merx Solution: After reviewing our client’s trading records, projections, and available security, we were more than comfortable advancing the required $250,000 for fit-out and establishment costs. Using first mortgage security, we set up the facility on Principal and Interest repayments over a three-year window and a 12-month term. Our objective for the client was to create a structure that would (a) provide the funds they need to get their new site operating and (b) prepare them for refinancing the facility back to their bank at the end of the 12-month term. This is an excellent example of how we can help clients achieve growth objectives and bridge the gap between short and long-term finance needs.
SIMPLIFIED PROJECT FUNDING
Client Scenario: At times, attempting to finance smaller property projects through a bank can become an exercise in excessive red tape. In our client’s case, the $1.5 million required for their small residential townhouse project attracted the same conditions you’d expect for a $50 million project, i.e., pre-sales, full quantity surveyor, etc. Rather than continuing to stall progress, our client approached Merx for a solution.
Merx Solution: With ample security available—first mortgage on the new townhouse development and second mortgage security on the broader portfolio—and sound projections for the end value of the completed project, we advanced the $1.5 million required so this experienced property owner could get moving. We set the facility up on a term that aligns with the projected completion date and using a simplified project funding structure.