The art-secured lending market is booming. In fact, according to report by Deloitte Luxembourg and ArtTactic, the market has expanded to an estimated US$15-US$19 billion of loans outstanding in the U.S loan. Yet, in a guest article for Wealth Briefing, Tim Hunter, Vice President of Falcon Fine Art, discusses the reasons why using fine art as collateral is a complex task – and not without its challenges.
Hunter explains that collateralising art is not an easy process. A variety of factors ranging from ownership, authenticity and attribution to condition, location and insurance must be taken into account. As different countries have different laws governing artworks and lending, this also adds to the complexity. More importantly, art is a notoriously difficult asset to value.
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