What is the difference between a recourse and a non-recourse loan?
A recourse loan is secured by the art assets in addition to being guaranteed by the borrower. A recourse loan implies that a borrower’s full credit backs the loan. A non-recourse loan is secured solely by the art assets underlying it. A non-recourse loan typically incurs a higher interest rate as the art is not undersigned by the client and acts as the only source of collateral for the loan.




We own art that is going to auction. Are we eligible for a loan?
Absolutely. A loan secured by art that is scheduled to be sold (a bridge loan) is one of our most popular financing products. Bridge loans from Art Capital Group provide art owners with liquidity from their art assets well before the planned sale. By financing a bridge loan through ACG, a borrower maintains the flexibility to sell privately or through any of the major auction houses. Ultimately, the proceeds from the planned sale are used to repay the loan, with the balance of proceeds being returned to the client.




How long does it take to get financing?
We complete many transactions within 30 days, and often within a couple of weeks, upon introduction to prospective clients. We understand the urgency of completing transactions rapidly and efficiently. The timing of a transaction is principally driven by the speed with which we gain access to the materials needed to evaluate the art assets and the borrower’s credit.




Do you work in conjunction with the auction houses?
ACG is an independent finance company, and we are not affiliated with any of the auction houses directly. We often work with auction houses to sell assets on behalf of clients, however. We are able to buy and sell art, either privately or at auction, to get the best value for our client. Additionally, as a specialist company, we can manage the entire auction process on behalf of our clients.




I am looking to finance my collection, which is in both Europe and the United States. Can ACG lend against assets held offshore or against assets owned by offshore entities?
Yes. ACG has global lending capabilities, and we represent clients worldwide. Restrictions on the location of the art collateral securing a loan may exist, depending on the venue, as security laws differ from country to country. Loans are typically denominated in U.S. dollars but may be arranged in other currencies.




What are the terms of a loan?
Because art assets and the needs of our clients are unique, we customize our loans for each client based on individual circumstances. Art Capital Group offers flexible terms to our clients because we understand that each collection and piece of art requires special attention.




What happens to my art once I finance against it?
There are several options from which to choose. Artwork can be stored in one of our secure storage facilities in New York City or displayed in our Madison Avenue gallery space. For art located abroad, pieces can be stored in appropriate storage facilities under Art Capital Group’s control.