Art Finance

What is Artiana Fine Art Finance?

Artiana Fine Art Finance is our art finance advisory division. Leveraging upon the strength of our auction house platform, we specialize in financing solutions that cater to both—buyers in our auctions as well as others who can borrow against blue-chip Indian art works.

We provide finance solutions to consignors and FlexiPay options to buyers at our auctions, and arrange advances secured against Indian fine art at competitive interest rates. Our bespoke finance solutions provide financing for fresh acquisitions or existing collections.

Buyers at our auctions can avail of our FlexiPay scheme to pay for the lots won by them subject to eligibility, and securing a pre-approval before the auction. Bidders intending to use FlexiPay to pay for their items should contact the auction desk before the auction with details of the total anticipated amount and specific lot/s that would be required to be covered by the FlexiPay scheme in case the bids are successful. The FlexiPay scheme covers up to 80% of the lower estimate value of the lots excluding any taxes and/or levies, and the balance amount over and above the amount covered by the FlexiPay scheme has to be settled within the regu-lar timeline as mentioned in the invoice. The item/s remain in the custody of Artiana till all amounts due under the scheme and any other incidental charges are cleared in full by the buyer.

The maximum amount covered by the FlexiPay scheme is up to 80% of lower estimate value of the respective lot, which can be divided into equal payments ranging from 3 to 12 months and the service charges payable for availing the scheme is a flat rate of 12 % p.a. prorated as per the payment tenor. There is no arrangement fee or storage charges applicable whereas insurance charges are billed at actuals to all FlexiPay clients.

By financing their purchases at Artiana auctions, clients can take advantage of opportunity buys and schedule a delayed or installment payment on their acquisitions based on their cash flows. By leveraging existing artworks, our clients optimize the use and enjoyment of their collection, while unlocking equity and allowing further portfolio diversification.

We will consider individual artworks and collections of blue-chip Indian fine art as collateral. Artworks must be freely marketable and produced by prominent artists with an existing track record in the secondary market.

We are an auction house, and offer advisory services on a highly confidential basis to evaluate artworks. The individual artwork or collection will be estimated by us as if they are being proposed for auction, and the advance against these item/s will typically be 50% of the lower estimate value offered by us. We will also require an independent inspection by a conservator.

We will typically advance up to 80% of the lower estimate value of artworks purchased at our auctions or up to 60% of the appraised value of the proposed external art collateral.

We arrange advances starting at USD 50,000 and can assist in securing advances of substantially larger amounts. For buyers at our auctions we can offer a reduced threshold on a case-to-case basis.

The approval depends on the location of the artworks and the clients’ art ownership structure. However, our domain expertise and large, liquid balance sheets of our financiers allow us to complete the process more quickly than traditional operators.

No, we require that the artwork be held as collateral in our art storage facility till the advance has been fully paid back to our financier.

Throughout the term that the artworks are held as collateral they will be insured at double of the advance amount, to cover the full value of the art asset. The policy will be assigned to us for distributing the amounts as stipulated, between the client and financier. The insurance covers the items right from the time of collection, during storage until the final handover.

The artworks remain the clients’ property during the entire storage period.

Our advances offer flexibility and a variable tenors upto 24 months with a no-charge early exit option. Unlocking equity and receiving liquidity without cumbersome documentation and credit approval process. There is no personal liability, the collateralized artworks are the sole guarantee towards the advance (non recourse).

Clients can request an early exit before the expiry of the agreed tenor by giving 30 days notice without any exit charges being payable. Any advance service charges collected in such cases will be non-refundable.

Artiana Fine Art Finance will charge an arrangement fee of 2% of the advance amounts arranged against external art assets, this fee is waived for finance arranged against purchases made in our auctions. Depending on the value, tenor and terms of the advance the charges are calculated at typically 15 % p.a., payable quarterly in advance for fixed maturity payments, and at a flat rate of 12 % p.a. for monthly installment payments. The charges are set at the start of the facility and fixed for the entire tenor. There are no additional costs for evaluation and storage, insurance cover is procured by Artiana to cover the full value of the asset and billed at actuals to the client.