RELEASING THE VALUE OF FINE ART
The decision to sell fine art is not an easy one, particularly when considering the ambiguous nature of fair market value as well as any emotional attachment – it may have taken years to find a specific work or carefully curate a collection. Borro Private Finance offers multiple means to release the value of fine art, leveraging our luxury market expertise and resources to obtain the best returns on a client’s behalf while also providing lending solutions that enable clients to immediately access the value of their works without being forced into a sale.
SALE ADVANCE LOANS
Borro Private Finance diligently manages the consignment of a client’s works and provides immediate funding ahead of the sale. Leveraging our extensive network of experts and auctioneers, we excel at identifying the best venue or venues that yield the highest value for each asset. Once the art has sold, the client receives any remaining funds, less interest and fees.
A Sale Advance Loan is ideal for those who have decided to sell but may not have experience or interest in overseeing the process and need immediate access to capital.
Loans of up to 50% of the appraised value are secured against fine art, with typical terms of 3 to 24 months. Assets are professionally handled, kept in highly secure, climate-controlled storage facilities, and at the end of the loan period, once the loan and accrued interest have been paid in full, assets are safely returned.
Secured Loans are an excellent option for clients who need temporary access to liquidity yet aren’t looking to sell outright, allowing them to still leverage the value of fine art that holds personal significance or could appreciate over time.
For additional information, please see our Fine Art Finance page.
FREQUENTLY ASKED QUESTIONS
Gain additional insight into the advantages and disadvantages of selling fine art.
Where should I sell fine art?
When deciding to sell fine art paintings and prints, there are many choices such as private dealers, specialist auctions or by exploring options online. If you have a good level of expertise and industry knowledge, you may be able to secure a good price via an outlet. However, it can be a time-consuming process and without adequate market knowledge, negotiating can be tough. Borro Private Finance offers extensive expertise within the world of fine art and selling of high-value assets, helping our clients to receive more for their works. Should you decide to sell art yourself, the following options are available:
This is where you agree to a sale with individuals not necessarily tied to any dealership or auction house, such as private collectors or the general public. This is a great way of controlling whom your item goes to, particularly if it holds sentimental value and you do not simply want to sell to the first or highest bidder. Conversely, by only approaching certain individuals, you limit your audience and in doing so, potentially miss out on a better offer and leave less room for negotiation.
Auction houses offer a great platform to sell fine art because they attract a large audience, give items advertising exposure and should there be more than one interested party, can help an item exceed its estimated value.
However, there are drawbacks. Due to the seasonality and schedules of auction houses and depending on the category of the artwork, it may take weeks for a piece to come to sale. If there is a more pressing need for capital, Borro Private Finance provides prompt access to funds while your art awaits sale or until the loan is repaid.
What are the alternatives to selling?
There are a number of other options to selling fine art, all in the form of loans.
One option is obtaining an unsecured loan. However, these are contingent on credit history and financial background and, should those be insufficient, it could be very difficult to obtain a loan or result in exorbitant interest rates.
Borro Private Finance offers an excellent alternative with asset-secured loans, which are calculated purely against the value of the art and therefore credit rating has no influence or impact. Furthermore, as a lender specializing in fine art and luxury assets, our appraisal and auction expertise enables us to often provide higher valuations and, in turn, more favorable rates and loan terms. We are also experienced with the delicate nature of fine art and ensure our client’s works are appropriately handled, secured and insured throughout the process.
FINE ART INSIGHTS & ARTICLES
Borro Private Finance Featured in Antiques & The Arts Weekly