dynamic art

COLLATERALS

 

Need a loan to finance new art acquisitions, fund investments, manage short-term cash needs, and achieve longer term asset allocation and estate planning goals?

Dynamic Art will help you to facilitate a loan using art and collections as collateral.

BUSINESS-ART CONSULTANCY

 

Art Finance applies business administration techniques and processes to the art world.

The purpose is to reconcile both disciplines as they potentially have opposite objectives.

  • Many players in the art market have important artistic assets but lack liquidity.
  • In many cases they need advances to buy art that they will later resell.
  • The difficult access to credit negatively affects the growth of their businesses
  • Traditional lenders have not been able to connect with them, which has left an important gap in this market.

 

DYNAMIC ART-FINANCE IS...

… a financing formula that uses artistic assets as backup. Investing in guaranteed loans with artistic pieces is a good opportunity to diversify money profitably with very limited risk.

The recipients of these loans are owners of important artistic assets that lack liquidity. They can be collectors, but usually they are intermediaries of the art market or gallery owners who need financing to grow their business.

For art dealers, a certain level of leverage is an effective way to release the value of their stocks and use them as collateral to improve the management of their cash flows or to finance new acquisitions.

THE MARKET

Led by Leonardo da Vinci’s “Salvador Mundi”, which sold for US $ 450 million, global art sales reached around $ 63 billion in 2017, 12% more than the previous year.

The United States represented the largest market, with 42% of sales, followed by China with 21% and the United Kingdom with 20%.

The Spanish market represents only a small fraction of these sales with a 0.7% share.

Public auctions represented 28.5 billion US dollars of the total, 27% more than in 2016.