Attorneys often need creative solutions for clients who may be seeking liquidity for expenses incurred during mediation and/or divorce proceedings. Many assets can be used for a secured loan, including works of art.
Art-secured lending allows your clients to access capital while simultaneously affording them the luxury of time so that they do not feel pressured into selling their artwork under suboptimal conditions.
Art-secured lending has been growing in popularity in recent years. A 2021 report from Deloitte estimated that there are between US$21.6 and US$25.2 billion in art-secured loans to private collectors in 2021, and that the overall market for art-secured loans could “further grow to an estimated US$31.3 billion by 2022.” This growth has opened the door for alternative art lending firms like TPC Art Finance (TPCAF).
TPCAF’s loans are bespoke to the client and to the situation. Because of our structured underwriting and proven track record, we work more nimbly and quickly than many other lenders.
In addition, TPCAF does not stipulate how funds are utilized. Borrowers can use funds from an art-secured loan through TPCAF however they choose – including to pay for attorney’s fees and proceedings.
For attorneys who are advising clients with significant art collections but limited liquid assets, an art-backed loan can be a positive and unencumbered way forward. With the consent of both spouses, art-secured lending allows them to deploy the equity of their artworks while providing the time needed to prepare for an orderly sale or distribution of property.
To learn more about how your clients can benefit from art-secured lending, click here.
We look forward to collaborating with you.
To read TPC’s analysis of the art-secured lending market from Deloitte’s 2021 edition of the Art & Finance Report, click here.
To view the full report, click here.