Art Services

Art consignment services are those offered by a consultant or financial services firm, that can help a collector arrange for the sale of art and collectibles through partnerships with various auction houses. Often these services can offer pre-negotiated terms available and streamline the sales process. They can also help collectors:

• Optimize the sale of their property at auction via a preferred selling channel
• Save time and money with preferred pricing on seller’s commissions and fees
• Receive sales strategy and independent advice throughout the auction process
• Generate liquidity to acquire more art or to raise capital for other opportunities

Yes. When part of a well-structured philanthropic or estate plan, art can be donated to a museum or set of museums. Doing so can help the donor potentially reap tax benefits while supporting an arts institution. But museums are not always able or willing to accept artworks offered to them and if they do, they may not be obligated to keep or display them as you would like. Collectors can also form their own museum, which can offer greater control over how the collection is presented to the public. This approach requires strict adherence to the Private Operating Foundation rules and may also require significant costs of building, maintaining and staffing a museum.

An art loan agreement is a type of structured lending (also known as custom lending) agreement that allows a collector to use their art as collateral for a line of credit, while keeping the collection on display. These kinds of structured loans are often used by collectors to finance business goals; acquire additional artwork; take advantage of other financial opportunities; and/or raise funds for donating and gifting.

Fine art is a powerful capital financial asset that may be appropriate as collateral for a structured line of credit. By borrowing against artwork, collectors may create liquidity to take advantage of a broad range of financial opportunities, unlock capital, and/or purchase additional art or cash flowing assets. Banks and other lenders often have strict guidelines for art lending that include the types of art collateral accepted, minimum collection and loan values and loan terms and covenants.