Art-backed finance can take a little longer than other types of "quick" lending (securities-backed lending typically moves faster, for example). The reason for this is that art will need to be valued and authenticated by, or on behalf of your lender. An expert will carry out the appraisal, and there’s no way to substitute having this done in person.
Art finance is relatively quick when you have access to a player like Enness, who knows which parties will have an appetite to lend. As an expert negotiator, your broker will also know which details to bring to the table to entice lenders to offer you the most competitive deal.
In the first instance, your broker will start by sharing the details of the art you’d like to borrow against with prospective lenders. Depending on how much you are willing to reveal, Enness will share photographs, relevant documentation and the details of your fine art or art collection with select lenders. If you wish to receive initial offers without revealing the full details of your ownership to maintain confidentiality, Enness will be able to cater to this, although rates and terms will be approximate.
When Enness has sourced a competitive offer that you would like to accept, your lender will need more documents and details if you have not already supplied them. They will also want a specialist to appraise and value your artwork.
Depending on where your art is located and where the appraiser is (and how easy it is to bring them together), this can go more or less quickly. Art experts can generally be found in all major cities, although you may have to wait a little longer if you have a rare piece that requires a particularly specialist appraisal.
For the right borrower and the right transaction, you will find that lenders will do their utmost to ensure that a valuation and inspection can be carried out in the minimum timeframe. From there, provided the appraiser and the lender are happy that the art is genuine, is owned by you and the art’s market value, things will move fast. When the art has been appraised and valued, your broker will tie up the loose ends to push the deal through to completion quickly. From there, lenders can usually release funds in as little as two to three weeks.