Borrowing against a painting or a collection raises money without selling at the wrong moment or paying sales commission. It works differently from a mortgage, mostly because of how lenders value art and keep it safe.
In confidence
Thinking of borrowing against a work or a collection?
Tell us about the piece and roughly what you need. A specialist will come back to you privately, with an NDA on request. Loans start above £25,000.
Speak to us in confidenceNo credit check until you choose a lender. Capito is a broker, not a lender.
Private banks lend against art mainly to existing clients, often as part of a wider relationship. The large auction houses run finance arms too; Sotheby's Financial Services is the best known. Specialist asset lenders make up the rest of the market. They tend to move faster and will look at smaller or less conventional collections, but they charge for that flexibility.
The right lender depends less on the rate than on the works themselves, how much you need and how soon.
A lender starts with its own valuation, usually close to what the work would fetch at auction. That's often lower than an insurance or retail figure, and lower than owners expect. The loan is then set as a share of it, typically around 50%. Blue-chip works with a long auction record can get more, while contemporary pieces whose prices move quickly usually get less.
Single works can qualify. Even so, lenders are more comfortable with a spread of pieces by different artists, each with a sale history they can point to.
For the length of the loan, the work goes to approved fine art storage. This is often a specialist warehouse, which can be located in a freeport. Lenders take more comfort from this, so terms tend to be better. You won't see the work until you repay.
Some lenders let the work stay at home or on loan to a museum. It has to be insured, documented and checked from time to time. Expect tighter criteria and closer monitoring, and usually a lower advance or a higher price.
Most lenders also search the Art Loss Register, the database of stolen and disputed works, before they lend.
Most art loans take two to four weeks from the first conversation to funds; the appraisal and paperwork set the pace. Costs usually include an arrangement fee, the lender's appraisal and legal fees, and insurance. If the lender takes possession, add storage and transport. Interest is usually charged monthly and can often be rolled up, so you may pay nothing until the loan ends. We tell you about any fee and commission before you proceed.
Art lending is private by nature, and lenders don't publicise who they lend to. If you'd like, we'll sign a non-disclosure agreement before you share any details of a collection.
You repay from other funds, refinance with another lender, or sell. If you sell, the loan is cleared from the proceeds and the balance comes to you. If a loan isn't repaid, the lender can sell the work to recover what it's owed. So borrow an amount you're confident you can repay within the term.
Lenders typically advance around 50% of their own valuation, which is usually close to auction value. Loans start above £25,000.
Some lenders allow it, as long as the work is insured, documented and checked from time to time. Expect a lower advance or a higher price than if the lender holds it in storage.
Most take two to four weeks from the first conversation to funds. Clear provenance, proof of ownership and a recent valuation all help it move faster.
Yes. Lenders don't publicise who they lend to, and we'll sign a non-disclosure agreement on request before you share any details.
Thinking about borrowing against a work or a collection? Tell us about it in confidence; we'll sign an NDA on request before you share the details.
Check eligibilityCapito is a broker, not a lender. This guide is general information, not advice on your circumstances.
About 90 seconds to tell us what you need. No credit check until you choose a lender.
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