Art Secured Financing: What You Need to Know

Ashley Lockwood, UK Business Development Manager for lender Borro, agrees, adding that demand for art-secured lending is increasing. “As the value and frequency of art transactions increases, so does the need for alternative financing solutions that enable clients to seize opportunities,” he says.

“Much like a property portfolio, an art portfolio can be utilized to raise liquidity in a number of scenarios. Clients are becoming increasingly savvy in the way that they approach lending and art has become more of a legitimate asset class.”

In this changing landscape, more lenders are emerging outside the traditional option of banks. Borro is one such example. It’s a specialized finance firm that provides loans secured against Fine Art, Classic Cars, Watches and Jewellery. Borro can leverage various asset classes within the same loan, to get the client where they need to be.

“This sets us apart from other art financiers on the market,” says Lockwood. “Our primary goal is to provide high-net worth individuals with a source of non-bank finance, allowing clients to raise liquidity with speed, privacy and impeccable service.”

Borro’s clients usually look to leverage artworks to raise funds to take advantage of a business opportunity, invest in real estate, relieve tax burdens and legal fees – or they simply want to raise capital for the purchase of another work at auction.

“Due to the simplicity and speed we offer, we are often the quickest and most efficient way to raise capital,” says Lockwood.

Borro will generally lend up to 50% of the value of the work. Its ability to lend is determined by a number of factors including provenance, estimated market value and risk associated with the work in question.

Works are stored in Borro’s storage facility for the duration of the loan. “Our logistics, storage and insurance are all industry recognised and can meet the standards set by our clients,” says Lockwood.

Read the original article at Happening.

About the Author:

Jay wrote about luxury asset trends for Borro Private Finance