Loan Against Art
Don’t Sell When You Need Finance!
When bought correctly, art can be an extremely rewarding investment. Unlike other alternative investments such as wine, whisky or even more mainstream ones such as stocks and shares. Art can be appreciated and enjoyed by the investor during their ownership. The last 10 years has seen collectable art values steadily rise – with demand for recognised works at unprecedented levels. Whilst it is recognised that not all art will appreciate in value, there is a price point to suit all pockets. With a growth in this market, an increasing number of people are also securing a loan against art. This can make good financial sense to those who need to raise short-term capital quickly, without the need to sell their prized collection.
Why Loan against art?
So why loan against art? There are many compelling reasons for using art to secure a loan. By using art to secure a loan with Edinburgh Asset Finance, we are normally able to make a loan offer and have funds in place to the customer within 1 day of their initial enquiry. We recognise that speed can be important in these situations. The loan is also completely invisible, in so much as there is never a need for any credit checks or affordability assessments. This means no impact on current or future borrowings and no chance of potentially damaging a credit rating.
Who will know about the loan against art?
The whole process is handled completely discretely and confidentially from start to finish. We can come to the customer to appraise the art and can arrange transportation of the art to our own temperature-controlled storage vaults. Then transportation back to the customer once the loan is repaid. Loaning against art rather than other assets can also work out well for the borrower. If paintings are still appreciating in value or have high sentimental value, then there is no need to sell.
How do Edinburgh Asset Finance Loan against art?
Loans against art are a very straightforward process. In the first instance, you need to email or call us letting us know what you have. We can then arrange to visit you or for you to come to our offices with the art. We will appraise it once we see it and can normally agree on a loan figure at that time. If the figure is acceptable then we will produce paperwork and as soon as this is signed loan funds are transmitted straight into your account. The painting will be stored for the duration of the loan within our secure temperature controlled vault with 24 hour CCTV and will be returned to you in the same condition as we got it as soon as the loan is repaid.
What types of Art have Edinburgh Asset Finance loaned against?
Edinburgh Asset Finance has loaned against many different types of art. From contemporary Scottish artists such as Jack Vettriano, Gerard Burns, Alberto Morrocco and Peter Howson. To far more traditional work from the likes of Hornel, Peploe and George Henry. We have even loaned against marble busts and bronze’s. We will consider loaning against any work of art that has a realisable value of at least £1500 – with no upper limit, meaning even the work of the great masters can be used. Our bank of valuers have a huge amount of experience within the International art world. They are highly skilled at determining a value of an artefact. This allows us to swiftly make an offer of a loan to any would-be applicant.
Case Study – Loan Against Art
A North of Scotland based business owner found himself presented with a rather unexpectedly large tax bill, at a time of year that tended to be quiet for business – meaning that it was going to be impossible to pay within the allotted timescale. Rather than go cap in hand to the bank and risk a lengthy and potentially damaging credit worthiness check a close friend had suggested contacting Edinburgh Asset Finance, as he was an avid collector of art.
What type of art was used?
He asked Edinburgh Asset Finance to appraise 2 Peter Howson paintings which he owned. Our valuer was able to look at both paintings within 24 hours and gave an estimated realisable value of around £20,000 for the pair. On this basis, Edinburgh Asset Finance was able to offer a loan that day of £12,000 which allowed the man to address his immediate cash requirement.
How long was the loan against art?
Within 3 months, the gentleman was in a position to repay the loan. The business had picked up again (as forecast). The paintings were returned to him in exactly the same condition as he had last seen them. All of this was done quickly, professionally and most importantly extremely discreetly. He had no impact on his credit rating and no need to alert the bank short-term cash flow issue.
Testimonial – Loan Against Art
“I approached Edinburgh Asset Finance with a sense of trepidation, as I was sailing into uncharted waters. My business was having cash flow issues which I could not resolve in the short term without alienating customers. My bank was only interested in getting a security over my home. All I needed was some time. I read a press article about the service offered by Edinburgh Asset Finance. When I approached them to see if they could advance me funds against some artwork.
I found them to be wholly professional but friendly with it; I was able to obtain finance to see us through the dip, at a reasonable rate of interest with complete clarity over repayment. The transaction was concluded swiftly and confidentially, my credit file remained unsullied and my previous paintings were held securely throughout.
I would use them again without hesitation. It gives me a sense of comfort to know that if I found myself in a similar position in the future there is a solution without having to beg from the bank or be indebted to family.”