The art of borrowing - fine art is latest trend in asset backed finance
The art market saw a record breaking year at auction in 2012 and borro, the UK's leading personal asset lender, has increasingly seen examples of fine art come through its doors over the past year. borro saw a 28% increase in the loan value of fine art in the second half of 2012 (versus the start of last year). Fine art now represents 29% of borro's overall loan book.
Modern British Art, more so than anything, is the genre of choice for borro's customers. Artwork by artists including Banksy, Antony Gormley and Barbara Hepworth is currently securely stored at borro's central London location. Other pieces of notable art include a Henry Moore sculpture which achieved a loan of £50,000 and an oil painting by Rolf Harris which achieved a £20,000 loan.
Art loan examples:
Description - Loan value
A sculpture by Dame Barbara Hepworth £25,000
A Rolf Harris oil on canvas £20,000
Anthony Gormley work on paper £16,200
Andy Warhol Mao print £13,000
Paul Aitken, CEO of borro, says: "In a climate where loans from traditional sources are few and far between, we are seeing clients using high value fine art to unlock necessary finance. An increasing number of individuals, entrepreneurs and small business owners recognise they have accumulated a wealth of personal assets. Obviously, prized pieces of fine art are hard to part with, in investment terms and from a sentimental perspective, so temporarily borrowing against them for quick liquidity is a savvy solution. We saw a 48% increase in the number of people lending against fine art in 2012.
"Brits are turning to alternative sources of lending for a variety of reasons - most of our customers are looking to facilitate business transactions and opportunities while others come to us to fund surveys and pay other fees relating to property refinancing. Other reasons include supporting an irregular income, funding holidays and school fees, and helping to pay tax bills and other unexpected expenses. borro provides a solution for those looking to raise finance by unlocking the value found in their personal assets."