There are times in life when we need to obtain a loan for something, and time is of the essence. When you have art you can use it as collateral for an equity loan. Online secured personal loans are fast and easy. The reason is that there is no credit check required when you use art as your collateral. There are several advantages to using art in this way. You can Increase your liquidity from the value of your art collection. There are no extensive bank checks, which take a long time, nor are any inquiries into your credit performed. The terms which you pay are flexible, and compared to other financing options the interest rates are competitive. Your liability is strictly limited to the artworks that you put up as collateral, not against any other assets. The size of the loan is dependent on the value of the item you have for collateral, this can be from up to a few millions of Dollars. When you do the inquiry this process is free and so is the initial valuation of your item(s) and you are under no obligation to move forward.
A non-recourse loan with Luxury Asset Pro uses your works of art as the only collateral. What this means is that your artwork is the sole guarantee of the loan. There are no further credit checks needed. Also we will not forward any of your personal data to a third party. Your privacy is of utmost importance to us. This also means that there is no personal liability. You, the borrower, must be the legal owner of the artwork. You should be able to provide proof of ownership of said artwork as well as the ability to provide your proof of identity.
The appraisal process makes loans quick and easy. Valuation of your Luxury Asset is performed by a professional appraiser; there is no involvement of either an auction house or an art dealer. Your work of art will be given a reselling appraisal. You will then be able to borrow a percentage of this appraisal. This will be your LTV ( Loan To Value).
Care and Professional Storage of Your Artwork During The Loan Term
Your artwork will be professionally stored in a specialist art storage facility. In most cases at the request of the borrower this can be in the closest major city that has a proper facility. The art will be stored under the loan financier’s name. During the term of the loan, the artwork can be accessed by the borrower for the purpose of sale to pay off the loan, but the artwork must stay in the possession of the facility and cannot be removed.
The term of your loan is flexible depending on your needs, usually terms of as little as six months to seven or more years are available depending on the artwork. Interest rates depend both on the artwork as well as the length of the loan. In the event that the term is exceeded, the agreement can be extended, often at the same terms and conditions upon request. When the loan including all interest has been paid, the work of art will be returned. There are no hidden fees. Luxury Asset Pro pays all costs of appraisal and examination, storage and insurance while at the storage facility, the customer can arrange transport to an art storage facility of his or her choice.
Luxury Asset Pro has a powerful network of discrete partners who are not present in the art market. We can provide loans worldwide that are not available elsewhere.
Non Repayment of Loan
In the event that a loan is not extended and the loan is not paid as agreed, the artwork will be put up for public auction at the earliest convenience or may be sold in a private sale.
If through this auction or private sale additional proceeds are generated after all costs have been deducted (appraisal, loan, interest, sale and auction fees etc.) then these proceeds will be paid to the borrower. It is in the interest of all parties to obtain the highest sale returns.
For more information or to get the loan process started click HERE