Art-Backed Lending 101: Unlocking the Value of Your Fine Art Collection

For discerning collectors, fine art represents far more than a passion—it is a lifelong pursuit of beauty, intellect, and legacy. Each acquisition tells a story, reflecting not only connoisseurship but also sophisticated financial judgment. As collections grow, so too does their market value; yet the capital embedded within these works often remains inaccessible, tied up in masterpieces that appreciate quietly on the walls.

Art-backed lending transforms that static value into strategic liquidity. By using fine art as collateral, collectors can access capital without selling cherished works—empowering them to act decisively on new acquisitions, manage estate planning, or seize investment opportunities while maintaining full ownership.

At the forefront of this evolving space is Sotheby’s Financial Services (SFS). Since its inception more than 35 years ago, SFS has originated more than $12 billion in loans. As of 2025, SFS is the global leader in the specialty lender space, with over 40% of the estimated market share.¹ SFS provides institutional-scale capital combined with the deep market expertise, discretion, and trust that have defined Sotheby’s for nearly three centuries. Through SFS, collectors can access up to $250 million in capital backed by fine their art, collectible cars, and other luxury collectibles—offering unparalleled financial flexibility without parting with the works they value most.

¹ The Deloitte Art & Finance Report (2025) estimates that the total art loan portfolio in 2025 for auction house lenders is between $3.5 billion and $5.0 billion.

Fine art has long been recognized as both cultural capital and a store of financial value. Increasingly, collectors are leveraging their collections as dynamic financial instruments—unlocking liquidity without sacrificing the legacy, enjoyment, and appreciation potential of their artworks.

An art-backed loan is a secured financing solution in which your artwork serves as collateral. Unlike traditional bank loans that depend on credit scores or financial statements, our approach to art-backed lending is based on the appraised market value of the art. The result is a discreet and efficient way to access capital while preserving ownership of your collection.

Borrowing against fine art releases capital from within your collection, enabling you to fund acquisitions or investments while continuing to live with and display the art you love.¹ Given Sotheby’s deep knowledge and expertise in fine art that empowers clients, clients avoid the complexities of credit checks or extensive financial disclosure.

This approach allows collectors to treat their art as both an aesthetic and financial asset. Rather than liquidating a cherished work to meet short-term goals, art-backed lending transforms ownership into opportunity—offering flexibility to respond to new acquisitions, rebalance portfolios, or support generational wealth planning. By leveraging Sotheby’s market intelligence and appraisal standards, borrowers can act with confidence, knowing that their financing is grounded in a deep understanding of global art values and trends.

¹ Please note that “in-residence” offering is only available in certain locations.

With Sotheby’s Financial Services, your art remains where it belongs—with you. In many cases, clients retain possession of their artworks throughout the life of the loan, preserving the emotional, cultural, and historical significance of each piece. This approach allows collectors to maintain continuity in their homes and collections while using their art to support liquidity needs. Art-backed financing also ensures that important works can continue their generational journey within a family, aligning financial strategy with long-term legacy planning.

In today’s fast-moving global art market, exceptional works often appear unexpectedly and require swift action. Art-backed financing gives collectors access to immediate liquidity, enabling them to act decisively when a rare acquisition opportunity arises—whether through auction, private sale, or a time-sensitive investment. Beyond acquisitions, many collectors use art-secured loans to support estate planning, philanthropic initiatives, or to seize attractive opportunities across their broader portfolios, making this flexibility a meaningful competitive advantage.

Every loan offered by Sotheby’s Financial Services is underwritten against Sotheby’s proprietary appraisal standards, eliminating the need for intrusive financial disclosures or complex credit evaluations. This creates a streamlined, discreet process that respects client privacy at every stage. From the initial consultation to the disbursement of funds, the experience is guided by specialists who understand both the nuances of the art market and the individual priorities of the collector, ensuring clarity, confidence, and efficiency throughout.

Sotheby’s Financial Services has refined art-backed lending into a streamlined, five-step process designed for speed, privacy, and precision:

1. Consultation: A private discussion with an SFS lending specialist to review your goals and identify eligible artworks.
2. Term Sheet: A tailored proposal outlining loan value, structure, and terms, based on Sotheby’s proprietary appraisal data.
3. Diligence: Sotheby’s manages compliance, documentation, and valuation seamlessly and confidentially.
4. Closing: Agreements are executed and funds disbursed—often within six weeks. In many cases, artworks remain in your possession or in secure storage.
5. Servicing: A dedicated client team manages renewals, invoicing, and ongoing portfolio reviews throughout the life of the loan.

This process empowers collectors to access liquidity quickly while maintaining ownership, privacy, and control.

Yes, in many cases. Depending on the jurisdiction and the loan structure, Sotheby’s Financial Services allows clients to retain possession of their artworks for the duration of the loan, provided insurance and security requirements are met. This means collectors can continue living with the art they love while leveraging it as a financial asset. When in-residence possession is not available, SFS offers a list of approved storage vendors across the world. We will endeavor to work with you on your designated storage vendor that preserve privacy and ensure the artwork remains fully protected.

Funds can be used for nearly any purpose, giving collectors maximum flexibility. Many clients use art-backed loans to acquire new works, support philanthropic initiatives, manage estate or tax planning, or capitalize on timely business and investment opportunities. Because loans are collateralized by the artwork itself, borrowers can allocate capital wherever it benefits them most—without selling or restructuring their broader portfolio.

On average, loans close in approximately six weeks, though timing can vary depending on the type, value, and location of the collateral. Sotheby’s Financial Services manages all valuation, compliance, and documentation in-house, allowing for a streamlined, discreet process from consultation to closing. For collectors pursuing time-sensitive acquisitions or transactions, this efficiency is often a decisive advantage.

No. Eligibility is determined solely by the appraised value of the artwork or asset being pledged as collateral. Sotheby’s does not require credit checks, income verification, or personal financial disclosures. This approach preserves confidentiality and provides a straightforward path to liquidity based entirely on the strength of your collection.

SFS provides financing across more than 70 collecting categories, offering far-reaching flexibility for diverse collections. Eligible collateral includes fine art, collectible cars, jewelry, watches, design, wine and spirits, and other luxury assets. This multi-category approach enables collectors to leverage the full breadth of their holdings—not just their largest or most iconic artworks.

Borrowing allows you to preserve ownership and potential long-term appreciation while gaining immediate liquidity. Long-term capital gains on fine art are typically taxed at a maximum rate of 28% in the United States. Borrowing against your collection allows sophisticated collectors, entrepreneurs, and investors to access liquidity without incurring significant capital gains taxes.

In addition, selling a work can introduce market timing risk—particularly in categories where demand, taste, and supply dynamics fluctuate seasonally or cyclically. By choosing to borrow, collectors maintain exposure to long-term appreciation, protect the narrative integrity of their collection, and retain the optionality to sell later under more advantageous market conditions. This approach preserves the cultural, emotional, and financial value of the artwork, while delivering the flexibility to pursue new opportunities today.

Whether you’re an established collector or exploring art-backed financing for the first time, Sotheby’s Financial Services (SFS) offers a trusted, discreet, and efficient way to unlock the value of your fine art collection—without selling the works you cherish.

• Institutional Scale & Market Leadership: With more than $12 billion in loans originated, $2 billion in lending capacity, and over 40% market share among auction-house lenders, SFS is the global leader in art-backed financing.
• Access up to $250 Million in Capital: SFS provides collectors with the ability to access up to $250 million in capital backed by fine art and collectible cars, meeting even the most significant financing needs with speed and sophistication.
• Discreet, Flexible Lending Solutions: Borrow against fine art, collectible cars, jewelry, or other luxury assets with complete confidentiality. Loans are underwritten solely against the appraised value of the collateral—no credit checks or personal financial disclosures required.
• Retain Ownership and Control: In many cases, clients keep their artwork in their possession or secure private storage for the duration of the loan, maintaining both the enjoyment and integrity of their collection.
• Tailored Financing, Expertly Managed: Every loan is structured by SFS’s global network of specialists and valuation experts, ensuring that collectors receive personalized terms aligned with their financial objectives—whether acquiring new works, managing estates, or funding broader ventures.
• Multi-Category Capabilities: Access financing across more than 70 collecting categories, including fine art, automobiles, jewelry, watches, design, wine & spirits, and other luxury assets.

• Discover how SFS can provide liquidity for acquisitions, estate planning, philanthropy, or new investment opportunities and request a confidential consultation tailored to your goals.
• Learn how to borrow against your fine art collection while maintaining ownership, privacy, and long-term flexibility.

• Connect directly with Scott Milleisen, Global Head of Lending for Sotheby’s Financial Services, to explore tailored art-backed lending solutions:

  • Email: Scott.Milleisen@sothebys.com
  • Phone: +1 917 251 6537
  • Scott and his team will guide you through your options and craft a lending solution aligned with the value of your collection and your broader financial objectives.

Trust Sotheby’s Financial Services—where great collectors find financial flexibility, backed by the expertise and discretion of a global auction house established in 1744.