Art as Collateral

Type of Value: Fair Market Value, Marketable Cash Value

Use Case: Art loans are a common practice to access liquidity against collections or finance large purchases. Lenders usually rely on Marketable Cash Value, which is Fair Market Value less the cost of selling the asset. Appraisal Bureau works directly with the top lenders in the industry to provide valuations for fine art financing solutions. Collectors may access capital to secure major acquisitions in private sale or auction by collateralizing their existing assets. Art loans are common for private both private and institutional collectors including museums and galleries.

Recommendations: Independent lenders may give more flexibility in loan maturity dates and access to capital. In some cases the only consideration is the MCV of the artworks, the borrower’s general portfolio is not reviewed.