Buying art has always come with a level of uncertainty, but a new trend in the industry is offering investors some peace of mind. “Art-secured lending” has become increasingly popular in recent years, allowing individuals to use their valuable artworks as collateral for loans. This lending option, once reserved for the ultra-wealthy, is now more accessible thanks to auction houses and boutique lenders entering the market.
According to Deloitte, non-bank lenders saw a significant 119% increase in art-secured lending over the past five years, outpacing the 31% rise seen at traditional banks. This surge in popularity has resulted in non-banks providing as much as $8 billion in loans against art and collectibles last year, accounting for 23% of all such loans – a substantial increase from 15% in 2019.
This alternative financing option offers art collectors a way to leverage their collections for financial purposes without having to sell their prized possessions. By using their art as collateral, individuals can unlock the value of their collections and access capital for various purposes, whether it be investing in additional art, funding a new business venture, or simply covering unexpected expenses.
Art-secured lending can be a strategic financial move for individuals looking to gain liquidity without parting ways with their treasured art pieces. The growing availability of this lending option has opened up new opportunities for art enthusiasts, investors, and collectors to make the most of their valuable assets while maintaining ownership and possession of their artworks.
As art-secured lending continues to gain traction in the market, more individuals are exploring this innovative financing solution as a way to maximize the value of their art collections. Whether you’re a seasoned art investor or a passionate collector, it’s worth considering the benefits of using your art as collateral to unlock financial opportunities and secure your valuable assets for the future.
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