NEW RETIREE SECURES DREAM HOLIDAY HOME WITH LOAN AGAINST A PAINTING

Suros Capital is a high specialist lender in the field of Asset Lending with Art lending seeing a huge growth in the past 12 months alone.  With over *£27billion in art loans expected globally in 2024 the company is expanding its services to meet the growing demand for flexible, art-backed financing.

One recent transaction has helped a newly retired client who was seeking urgent finance to secure an overseas property.   Under pressure from a non-negotiable property transaction date, the client was unable to wait until a specific sale to maximise the capital return on his artwork – a contemporary piece from an artist enjoying a robust track record of auction sales.  

The client’s financial advisor suggested working with Suros Capital to explore a short-term loan with a proposed term of 6 months, within which a suitable auction opportunity would be presented.

Within just four days, Suros Capital’s team had managed to have the artwork assessed and verified from a number of experts the company works with, who all confirmed the painting’s authenticity, and further research on the artist’s track record allowed this asset-lender to offer a loan of £450,000 against the valuable artwork.

The client was delighted as they were able to complete their property transaction which was to secure a  dream overseas base to enjoy in  their retirement.   The eventual sale of the artwork within the next 6 months means that the client will be able to clear the loan and commission rates leaving them with a balance to carry out the desired re-modelling work on their new home.  

Speaking about the transaction, Ed Blackmore, Suros Capital’s Business Development Director who managed the operation said: “Our ‘Advance’ lending product, has been perfect for this client’s situation, who always planned to sell the painting but due to the specialist nature of the artwork, needed to wait for the most appropriate auction opportunity.  Our product allowed us to provide immediate funding in this instance avoiding a missed opportunity or being restricted to routes that demand intrusive credit checks and or tie them into longer term loans with strict early redemption penalties.  We were delighted to be able to quickly help the client with their challenge allowing them to fulfil their retirement dream".

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* Source: Bloomberg
image is for illustrative purpose only and not of the actual artwork in question