Curious about what artwork we’ll accept as collateral? Here are the five things we require.
We accept a wide range of artwork as collateral—we specifically require artwork by recognized, highly marketable artists. We consider paintings, sculptures, and drawings both individually and as part of larger collections. Eligible pieces can be from any genre, category, or period ranging from Old Masters to Contemporary art.
2. An artwork must have a clear provenance
Provenance is the historical ownership of a work of art, tracking physical possession or location from the artwork’s creation to the current owner. This helps establish authenticity and legal title. The strongest can be traced back, without gaps, to the artist.
Gaps in provenance can be risky. For example, such gaps could mean that a piece has been acquired illegally, which leaves the piece vulnerable to disputes, such as a restitution claim from descendants of the victim of a theft.
3. You have to own the art to borrow against it
While it may go without saying, a borrower must own the artwork outright in order to use it as collateral for a loan. We require documentation to help prove ownership and title, such as paid invoices and proof of payment.
4. Valuing the art is the cornerstone of the art lending practice
Artwork used as loan collateral needs to be appraised to determine the Marketable Cash Value. A Marketable Cash Value reflects the price at which the artwork is expected to sell, at that point in time net of all commissions, taxes, and fees.
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5. Authenticated and correctly attributed
The artwork must be authentic and attributed to the correct artist. The artwork is not eligible to be used as collateral without validation from the recognized and accepted authorities on a particular artist’s work.
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