Sotheby's Art Handlers

Sotheby's Financial Services | Your Questions Answered

What kind of services does Sotheby’s financial services provide?

What kind of services does Sotheby’s financial services provide?

We provide a wide range of tailored financing solutions to our clients. All of our loans are secured by art, whether fine art, decorative art, or jewelry and are mostly in the form of term loans or short-term advances against a client’s consignments with Sotheby’s.

How much can I borrow against my art?

How much can I borrow against my art?

The loan amount is determined as a percentage of the total low auction estimate of the collateral (as advised by the relevant Sotheby’s specialists). Generally, we lend about 40-60% of the estimated total low auction estimate of the art proposed as collateral.

What items do you accept as collateral for your financing products?

What items do you accept as collateral for your financing products?

Sotheby’s has the ability to value can be considered as collateral. This includes such items as paintings, photographs, jewelry, sculptures and other works of art, furniture, books and classic cars.

Do I have to consign property to Sotheby’s in order to get a loan from Sotheby’s financial services?

Do I have to consign property to Sotheby’s in order to get a loan from Sotheby’s financial services?

No, not at all. While we provide advances against auction and private sale consignments for Sotheby’s clients, this is not a requirement. In fact, more than two thirds of loans provided by Sotheby’s Financial Services are term loans with no commitment to sell any collateral. To the extent a client decides to consign any of the collateral for auction or private sale, we are able to combine the consignment and financing terms to achieve the most appropriate solution.

What is the advantage of borrowing from Sotheby’s financial services as opposed to traditional lenders?

What is the advantage of borrowing from Sotheby’s financial services as opposed to traditional lenders?

With over 25 years of experience in art lending, an in-depth knowledge of the international art market, and an in-house world-class roster of art specialists, we can arrange truly bespoke financing solutions for our clients. Assisted by Sotheby’s offices in over 35 countries, we are at your disposal wherever you are in the world. Our unparalleled market expertise and unique underwriting approach enable us to offer loans discreetly and with unmatched speed. Unlike conventional lenders, we are focused primarily on your art and not your financial circumstances. This significantly reduces the amount of information needed from you to process the loan and allows us to fund the transactions on a timetable that traditional financial institutions cannot compete with.

Who will appraise my artwork? How much will you charge me for the appraisal?

Who will appraise my artwork? How much will you charge me for the appraisal?

Our clients have access to Sotheby’s in-house network of several hundred specialists around the world. Sotheby’s world-class specialists make comprehensive appraisals by considering the quality, condition, provenance, and market for each individual item of art. We do not charge our clients for the appraisal of the proposed collateral.

Will you allow the artwork pledged as collateral to be exhibited by museums?

Will you allow the artwork pledged as collateral to be exhibited by museums?

Yes, in most instances. We believe the exhibition of collateral can have a very positive impact on the value of your artwork and, as such, we try to accommodate exhibition requests to the extent possible. We have established relationships with museums all over the world, which allows us to set up the necessary arrangements in an efficient and expedient manner.

Who is responsible for insurance?

Who is responsible for insurance?

The client is responsible for maintaining insurance coverage on the artwork pledged as collateral. Sotheby’s Financial Services must be named as additional insured party and loss payee (to the extent of its interest in the collateral) under the borrower’s insurance policy.

How long is the term of the loan?

How long is the term of the loan?

Most of our loans are structured for two years and tend to be renewed at maturity. Relationships with some of our clients date back as far back as 20 years.

How long will the loan process take?

How long will the loan process take?

We aim to make funds available to our clients within one to two weeks after deal terms are agreed.

What is the first step in acquiring a loan from Sotheby’s financial services?

What is the first step in acquiring a loan from Sotheby’s financial services?

We first ask our prospective clients to provide us with details on the property intended for collateral. Details should include full descriptions, medium, dimensions and high-resolution images so that our specialists may produce the most comprehensive initial appraisal of the artwork. Our experts will need to physically inspect the artwork prior to closing, but, in most cases, we can provide preliminary valuation and financing terms based on high-resolution photographs.

What documentation do i need to provide to Sotheby’s financial services to process the loan?

What documentation do i need to provide to Sotheby’s financial services to process the loan?

As our underwriting and diligence focuses mostly on the art itself, we require documents that allow us to verify the provenance and ownership for the art proposed as collateral. The related proof of ownership is usually in the form of a purchase invoice or bill of sale. To the extent the proposed borrower is a corporate entity, legal documents establishing the authorization and existence will be required for such corporate borrower.

Where does the collateral need to be located in order for me to provide it as security for a loan from you?

Where does the collateral need to be located in order for me to provide it as security for a loan from you?

The collateral must be held in the United States, United Kingdom, Switzerland or Hong Kong at the time the loan is disbursed.

Does the collateral need to be delivered to Sotheby’s financial services in order to obtain a loan?

Does the collateral need to be delivered to Sotheby’s financial services in order to obtain a loan?

This will depend on each particular circumstance. In certain jurisdictions, we may allow the client to remain in possession of the pledged art but the option may not be available in other locations.

What is the best way to contact Sotheby’s financial services?

What is the best way to contact Sotheby’s financial services?

A Sotheby’s Financial Services expert can be reached at any of the following phone numbers: New York +1 (212) 894-1130, London +44 (0) 207 293 6006, Hong Kong, +852 2822 8188. We will also respond to any inquiries sent to the following email address: services@sothebysfinancial.com

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