Frequently Asked Questions

Below you will find answers to frequently asked questions about our Art Loans service. If you can’t find the answer you’re looking for below, please contact us.

Art Loans

What assets do you accept as collateral for a loan?

Atelier Art Finance will consider highly valued fine art. We do not not accept jewelry, antiques, collectibles or any other type of assets.

How does the process of getting a loan work?

  • The process begins with a confidential consultation about: the type of loan best suited for you; the art being used as collateral; the requirements and general terms of the loan.
  • You provide us with details and images of your artwork(s) and and we will determine if they are suitable for an art loan.
  • If the art is approved as collateral for a loan, we will present you with a Term Sheet, which outlines all details of the loan.
  • When the aforementioned concludes successfully we will arrange all the necessary insurance, transport and storage arrangements with you, and then pay you the amount of the loan.
  • Please note that the entire process can take as little as five business days, and under normal conditions in under two weeks. The legal aspects of every loan are handled by a major New York law firm.

What size loans do you make?

Loans start at a minimum of $250,000.

What is the average duration of an art loan?

Loans are structured to last up to two years. Loans that expire can often be reset for an additional term. Loans can be paid off at any time during the term of the loan, with a minimum of six months of fees due upon cancellation.

What type of loans do you make?

Most Atelier Art Finance loans are structured as asset-based or non-recourse, and are secured by the underlying art assets. In most cases, AAF loans do not require personal or other asset guarantees. Loans are generally offered for a fixed-term and at a fixed-interest rate.

AAF acts as both a principle and an intermediary in funding loans. As a principle, funds are loaned directly by the company. As an intermediary, we manage all aspects of the loan from start to finish. Our goal is to provide you with the best rates in the industry, coupled with outstanding service.

How long does it take to complete the loan process?

Typically, it takes less than two weeks from the initial contact to receipt of funds. In some instances, loans can be secured within a a few days. The time varies with the complexity of the loan and the punctuality of the borrower in supplying AAF with the necessary loan documentation and artwork.

What can art loans be used for?

Loan proceeds cane used for any lawful purposes.

Do you make loans outside of the United States?

Yes.

What happens if I default on my loan?

In the event of a default, AAF will assist in selling the underlying art collateral in the most expeditious and efficient manner. Artworks are sold via auction, private sale, or through our affiliate company Ackerman’s Fine Art, LLC.

How are artworks used for my loan insured?

You can obtain your own insurance or we can arrange insurance for you.

How are artworks valued? Also, how much can I borrow against my art?

Depending on the art in question, we will use one or a combination of the following: our own expertise; that of noted experts; auction house estimates, and professional appraisals. Typically, we loan up to 50% of the value of the work or collection.

How is the interest rate on a loan determined?

Interest rates vary based on several factors: Liquidity and quality of the underlying art, duration of the loan, size of the loan, and the loan to value amount.

What happens to my artwork after financing is in place?

Works are stored in an approved art storage facility.

Can I or others access my art while it is in storage (and during the term of the loan)?

Yes. With sufficient notification, viewing arrangements will be made by Atelier Art Finance with the corresponding art storage facility.

Can I take a loan against art I am planning to sell within the year?

Yes. We provide bridge loans which enable you to obtain cash prior to the sale.

Can I sell art currently being used as the collateral for my loan to a third party?

Yes. Upon the approval of Atelier Art Finance. A pay-down agreement and its terms are included in the original documentation of the loan.

Art sales can also be made through our affiliate company, Ackerman’s Fine Art, at any during during the loan term.

I would rather sell my art holdings outright, rather than obtain a loan. Do you purchase art?

Although Atelier Art Finance does not make purchases, artworks can be sold or consigned through our affiliate company Ackerman’s Fine Art.

Do you provide advisory services?

Yes. We offer of plethora of advisory services, such art authentication, art evaluations, and assistance with sales and acquisitions. We offer many of these services at our affiliate company Ackerman’s Fine Art.

I want to consign my art to a gallery. Do you accept consignments?

Yes. Consignments are accepted at the discretion of our affiliate company, Ackerman’s Fine Art.

Can I get a loan while my art is on consignment?

Yes. AAF allows borrowers to obtain a loan while their art is consigned for sale with our affiliate company Ackerman’s Fine Art. This allows borrowers to unlock the value of their art in order to obtain a favorable sales price.