Art-secured lending has become an established component of collection finance. Lenders extending credit against fine art holdings require independent appraisals to establish the value of the collateral, assess concentration risk, and determine appropriate loan-to-value ratios.

Collateral appraisals serve a distinct purpose from insurance or estate valuations. The lender needs to understand not only the current market value of the work but also its liquidity—how readily it could be sold, through which channels, and within what timeframe in a default scenario. These factors directly affect lending terms and risk assessment.

We provide collateral appraisals for banks, specialty lenders, and family offices extending art-backed credit facilities. Reports are structured to address both fair market value and the practical considerations relevant to collateral assessment, including marketability, condition, title clarity, and the depth of the artist's secondary market. Our collateral appraisals include a fair market value determination for each work, supported by comparable sales data and market analysis. We also assess factors that affect liquidity and time-to-sale, including the current state of the artist's market, recent transaction volume, and the availability of appropriate sales channels.

We work with lending institutions on both initial portfolio valuations and periodic reviews required under the terms of existing credit facilities. Where a collection serves as collateral for an ongoing line of credit, we provide updated valuations on a schedule aligned with the lender's requirements.