Luxury asset lender Suros Capital has reported a 50% increase in art finance enquiries, including products such as bridge loans, sale advance and auction acquisition loans. In its overall loan book, 35% is secured against fine art from artists such as Banksy and Tracey Emin.
Loans usually start at upwards of £100,000, said Suros. As well as high net worth individuals (HNWI) borrowing for personal reasons, the lender is supporting art dealers and gallery owners.
Suros said there were many reasons owners might want to borrow against their fine art These could be to generate cash flow to purchase new art auction or private sale or because they require the funds before the sale date.
Service professionals such as financial advisers and wealth managers tend to lack knowledge of the benefits fine art lending offers, according to Suros. This means lending solutions are not advised to clients as widely as they could be.
The boutique lender said: “Suros offers short-term loans with competitive interest rates. Clients do not need to undergo any credit or affordability checks. The luxury asset lender provides loans from £20,000 to £2m and terms from 3 to 24 months, often within a day or two, making it the go to lender when it comes to borrowing against your works of art.”
Suros is offering a “faster, more straightforward approach, and less stringent requirements meaning capital can often be released much more quickly.”
Charles Hodge, business development director at Suros Told Private Art Investor: “As we continue to increase awareness of fine art-secured lending in the art industry, we anticipate further adoption from private collectors and financial intermediaries in 2022, with the key growth driver being acquisition finance.”