Art and cultural institutions
Art as collateral
The acquisition of fine art has always been a uniquely rewarding enterprise. Today, the growing mainstream acceptance of art assets as loan collateral has further increased the desirability of such purchases.
Borrowers, including collectors, investors, art dealers, trusts, estates, foundations, and museums can monetize their fine art collection to pursue many opportunities including raising cash for new investments, re-financing other debt, supplementing income, creating cash flow, and purchasing more art.
The transaction costs associated with a bank loan can be much lower than the transaction and tax expenses associated with the sale of works of art. Banks are eager to make loans to high net worth individuals, and fine art provides the appropriate collateral. Auction houses also provide loans to bridge the gap prior to sale.
Requirements for loaning artworks may differ based on the country of residence. We have advised on many global transactions and can assist you with the intricacies associated with international transactions.
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