UNLOCKING THE VALUE
OF FINE ART ASSETS
5 THINGS TO KNOW
The rare beauty of fine art contributes to its intrinsic value and the reluctance of many collectors and art professionals to make hasty sales of their fine art assets when facing a liquidity shortage. Fortunately, collateral loans provide an attractive alternative to selling by enabling individuals and galleries to use their fine art assets as loan collateral.
Indeed, the interest in using fine art assets to boost liquidity is growing, and already quite high. As measured by the 2019 Deloitte Art and Finance Report, 69 percent of collectors said they would be interested in using their art collection (or parts of it) as loan collateral. With fine art well established as an alternative asset class that generally holds or appreciates in value, it should come as no surprise that art-secured lending is a popular financial strategy among the fine art asset owning community.
The process is simple and straightforward, though there are several important requirements that owners of fine art need to be aware of when seeking to borrow against the value of their holdings. Here are five important things to know about the process:
Borro is a leading lender to fine art owners, providing loans and lines of credit from $25,000 to over $5,000,000 collateralized with fine art assets including Post-War and Contemporary Art, Prints/Multiples, American Art, Impressionist Art and Modern Art.
New York Office – Midtown Manhattan
110 W 40th Street
New York, NY 10018