ArtAssure, the specialist art financier, has launched a marketing campaign for prospective sellers in 2015 auction sales who are looking for finance.
It is offering to advance sellers up to 50% of the loan to value of the collection’s auction estimate. ArtAssure will offer interest of between 10% and 15% for collections or items valued at more than $500,000. It is offering a minimum term of six months.
“The art finance industry is plagued by high interest rates and unreliable lenders. We relish the opportunity to provide the most transparent and competitive financial services to art market participants.”
In a marketing email, ArtAssure said: “The art finance industry is plagued by high interest rates and unreliable lenders. We relish the opportunity to provide the most transparent and competitive financial services to art market participants.”
Asher Edelman, founder of ArtAssure, says that they do not wish to insult anyone but says their comments are fair. “When you hear stories about financiers doing transactions so they can finally take away the picture or charging 40% interest per year it is fair to talk about unreliable lenders.”
“A lot of new money has come into the market looking for high returns,” says Edelman. “One issue is that if you do the right transactions art is a fairly liquid asset class – when you are offering high returns on illiquid assets you get problems because of the assets.”
He says Edelman is looking to close $20 million of loans in the next few weeks. ArtAssure targets borrowers that do not want to use, or do not have, private bank relationships. “Our customers typically have art and need money. Not art owners who have income or wealth,” says Edelman
As well as ArtAssure, Edelman is also seeing strong demand for Artemus, a new art leasing business. “I am still really excited about Artemus,” he says. “We are seeing strong demand and we can compete with banks on pricing.”