There’s been an interesting shift in lending in recent years: art-backed lending. One reason for the boom is that banks in general have started tightening lending standards, which has sent many would-be customers to firms like Qollateral to meet their financial goals. With competitive rates and a simple application and appraisal process, it’s easier than ever before to loan on fine art. The best part? You don’t have to sell anything to cash in, either. Let’s go over how the process works here at Qollateral.
Why Choose a Loan on Fine Art?
First, what is art-backed lending? It works the same as any other collateral loan, where an asset is pledged as security in exchange for cash or another type of funding. The lender holds onto the asset during the loan, and it’s returned to the borrower once the loan is paid off in full. This form of lending differs from a traditional bank loan in that it doesn’t require a credit check or a lengthy approval process. It remains completely confidential, with details of the loan shared only between the borrower and the lender.
Another benefit is time. Selling art sometimes takes months and often involves paying heavy fees when everything is said and done, all to give up artwork that holds a lot of sentimental or historical value. We can see why that option wouldn’t work for some borrowers. By lending, you can capitalize on the value of your art while retaining ownership.
Other Benefits of Art Loans:
- Cash for new opportunities: Use your art collection to finance a business opportunity or add new pieces of artwork to your growing portfolio.
- Estate and Tax Planning: Settle your financial obligations now without selling your long-term investments, thus leaving them in the family for future generations to inherit.
- Discreet Access to Cash: Private and instant access to cash without the public listings, auctions, or dealer negotiations that come with selling.
How Qollateral Simplifies Loans on Art
Why choose Qollateral over other companies? We make lending simple. The process can be completed on the same day if you choose, and it is entirely confidential. We evaluate every loan on a case-by-case basis, allowing us to tailor the experience to your specific needs.
Lastly, we allow you to lend with complete confidence. Qollateral has never lost or damaged an item under its care. Additionally, Qollateral insures all artwork through Lloyd’s of London and stores each piece in a fully monitored, temperature-controlled vault in NYC’s International Gem Tower.
How it works:
- Schedule and appraisal: Set up a virtual or in-person appraisal with our in-house art specialists.
- Provide Documents: This may include purchase receipts, authenticity certifications, exhibition or auction catalogs, previous appraisals, or numbered certificates for limited-edition art.
- Same-Day Offer: Our team will provide a straightforward loan offer, outlining the loan terms and asset appraisal.
- Accept the Terms/Instant Funding: Sign the loan terms and have instant access to cash via wire transfer, check, or cash for in-person appointments.
Benefits of a Fine Art Collateral Loan
Building on some of the topics we covered above, here are the benefits of choosing a collateral loan over traditional bank loans.
- No credit check is required. Qollateral approves your loan based on the value of your art rather than your credit history. This option appeals to individuals with poor or no credit, or those who simply wish to secure a loan without involving their credit history at all.
- Since the loan is secured using an asset instead of your credit score, it remains completely confidential.
- Loans are quick, often with same-day funding.
- Most importantly, you will retain ownership of your artwork.
What to Know Before Seeking a Loan on Fine Art
Below are a few things you should keep in mind while heading into the appraisal process for art-backed loans.
- Artist Reputation and Market Demand: Popular artists or those with strong auction performance command higher loan-to-value ratios.
- Condition and Conservation: Well-preserved art is usually worth more than art with damage or restoration.
- Provenance and Documentation: Evidence of ownership history and certificates of authenticity facilitate the authentication of artwork, thereby adding value.
- Market Trends: Our team of appraisers will always consider current sales data and general sentiment in the art market when valuating art.
- Unmatched Art Expertise: Qollateral’s team of appraisers and art specialists boasts extensive combined experience in the field and understands the financial and aesthetic value of fine art.
The Qollateral Difference
At Qollateral, we understand the importance of trusting your lender. We handle all artwork with museum-level care because we know art holds more than just appraised value. It carries stories, immense provenance, and personal meaning for some.
With Qollateral’s art-backed lending, you can access the value of your collection without giving it up. It’s a discreet way to manage cash flow or fund a new opportunity while retaining ownership.
Experience the Qollateral difference for yourself. Contact our team to schedule a confidential consultation for your art collection.
Call or text: 212-287-5257
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