Are You Borrowing Against Fine Art?

"Art now is seen as a definite asset class which is traded."

Select banks and Christie's and Sotheby's have offered art financing.

And, more collectors, galleries, trusts, and museums have recently begun to take advantage of it.

The banks structure their lending as term loans, which are due on a specific date, or lines of credit.

The client may take out a loan against one specific artwork or an entire group. The amount generally up to 50 percent of the market value of the collateral.

Sotheby's Financial Services often advances between 50 to 60 percent of the low estimate, depending on risk.

Christie's  usually advances between 30 and 50 percent of the low estimate of a consignment. [read more thesun]

Regia Marinho' painting.
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