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Asset-based lending allows collectors to borrow money using their assets, such as art, as collateral. There are several advantages to this type of lending for collectors, including:
Asset-based lending allows collectors to access cash without having to sell their assets. This is particularly useful for collectors who want to maintain their collection while also having access to cash for other financial needs.
Borrowing against assets such as art rather than selling them can help preserve their value over time. This is because selling art can sometimes result in a loss of value, whereas borrowing against it allows the collector to retain ownership and potentially benefit from any appreciation in the value of the asset.
Asset-based lending is typically more flexible than traditional forms of lending, as the lender is focused on the value of the collateral rather than the borrower’s creditworthiness.
Asset-based lending allows the collector to retain ownership of their assets while they use them as collateral for the loan. This is in contrast to selling the assets, where the ownership is transferred to the buyer.
Asset-based lending (and art-lending in particular) can be a discreet way for collectors to raise capital, as the details of the loan and the artwork used as collateral are not made public.
Evaluation of asset eligibility & due diligence ( ownership, provenance, authentication and valuation)
Preparation asset presentation to financial partners
Selection of most relevant financial partners
Loan terms negotiation and management of relationships with financial partners
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