Equity release
Client Scenario: We’re currently helping an investor settle a new business purchase. This client is looking to diversify his current business portfolio by buying a retail venture selling essential items. The opportunity has just presented itself, but their bank is reluctant to take on the risk, and despite having equity, lack of available cash so far prevented this client from realising their ambition.
Merx Solution: Based on their stable and realistic projections, we were able to grant them a 400k loan at 75 per cent loan-to-value ratio, secured against an existing property portfolio. This will allow our client to pursue their new business opportunity, with the expectation that after six to 12 months they should be well-positioned to refinance.
Working capital
Client Scenario: This month, we helped a New Zealand-based exporter resume food export to China. They were looking for additional working capital to fund their stock purchase, but their bank was resistant to provide any more funding, particularly not in the short timeframe our client envisioned. So they approached us to see if we could help speed up the process.
Merx Solution: Providing good business owners with easy and fast lending solutions is at the core of our Merx proposition. Once we’ve run the numbers and determined that plans are reliable, we’re prepared to get on and get it done. In this case, we were able to provide the 100k working capital facility the client needed, at 75 per cent loan-to-value ratio, and backed by a second mortgage on their Auckland-based property. Most importantly, the turn-around time from application to close was just one week.