Art Loans are Booming

Fine Art is an asset that can see large sums of investment. We’ve previously covered how Fine Art sums up as an investment, concluding that art is something you should invest into if you really enjoy the medium of creativity and have a lot of knowledge on the topic. Though, as with all asset area, none comes with a safe guarantee. However, art is currently seeing a rise through the loan industry according to theartnewspaper. They have identified the areas of growth at the higher tiers of artwork sales, where the artwork is being estimated to hold their value for longer periods of time. Art loans have faced issues in the past, with artists failing to fulfil their contracts terms, such as Annie Leibovitz, but this hasn’t seem to of prevented the current boom of the art loan industry. According to Widewall, on the report the company Skate released, the Global Art-loan industry is up to $10 billion for 2015, double of what it was in 2011. It has been said by the art loan market has the projection to grow to $100 billion, although this has been identified as highly unlikely by artmarketmonitor who report that this number isn’t “plausible.”. Who lenders that are siphoning this growth in the art loan industry?

Borro is acting as an agile pioneer in the loaning business, helping to facilitate the usage of assets like fine art as loans at the lower levels. We allowing you to lend against pieces of art that are worth $5000 or more and are one of the few companies that will lend up to 70% of the artworks value, provided you give us the right to sell it. Fine art has proven to be one of the more popular assets that Borro loans against with an average of $250,000 per loan against a piece of art. Auction houses have proved to be one of the strongest proprietors of lending against fine art. Sotheby’s being the largest and had £1.3 billion in 2014 through which it could loan against art.

Currently, a small trend in Asian art auctions has emerged with the upcoming event Asia Week and other listings to feature in September, such as Saturday at Sotheby’s Asian Art auction. The art sale will include works from India, Southeast Asia, Japan and other areas of Asia, all within the estimated price range of $500 – $100,000. Bonhams is also reflecting this trend, holding an auction dedicated to Asian Art and featuring other listings of Chinese works of art.

About the Author:

Adam is a freelance writer that focuses on luxury asset trends for Borro Private Finance.