Sotheby's Financial Services | Your Questions Answered

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.

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.

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

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.

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.

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.

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.

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.

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.

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

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.

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.

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

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.

A Sotheby’s Financial Services expert can be reached at any of the following phone numbers: New York +1 (212) 894-1130, London and Asia +44 (0) 207 293 5797. We will also respond to any inquiries sent to the following email address: services@sothebysfinancial.com