Fine Art Financing
If you are a business and want to invest into fine art and paintings, then fine art financing might be a great solution to help pay for it. A UK company – subject to credit – can use fine art financing as a way to pay for a painting. It is quick and simple to organise and will allow you to hold onto your cash for other purposes. Read below to see how WestWon can arrange lease finance for fine art and paintings.
How do companies pay for fine art and paintings?
The reality is, many companies looking to buy fine art will have the cash to finance the purchase. Fine art is an investment and to the average company, this would deemed to be a luxury purchase. Buying fine art and paintings is not the character trait of a struggling company.
Can you lease fine art and paintings UK?
The simple answer is yes you can lease fine art and paintings. We do need to qualify this a bit further.
1. Firstly, any lease and finance lending is subject to credit
2. Lease and asset finance is only available to companies and other organisations. We cannot lend to private individuals and companies registered outside of the UK
3. There is then the question of how much does the fine art cost? We cannot lease a $450m Leonardo da Vinci but we can lease a £45,000 painting.
Why lease fine art?
There are a range of benefits:
1. Cash flow, you will not have to use up existing cash reserves or a bank loan facility. We are a third party leasing company that will fund the purchase.
2. Tax planning. You can rent the fine art and take advantage of having all the rental repayments allowable against corporation tax.
3. Hopefully, the interest you pay on the lease will be less than the appreciation of the fine art, hence over time, the way of your investment will rise.
4. Acquire the fine art today, you do not have to potentially wait until your cash flow is strong enough to cover the purchase.
What is the process to leasing fine art?
1. You choose the supplier, the paintings and agree the price.
2. We supply you with a lease quote, detailing what the repayments will be over your preferred repayment period, normally one to five years.
3. Once you have accepted the quote, we will undertake a credit check and arrange for the lease paperwork to be created, normally this takes about two days.
4. Once the paperwork is signed, the gallery will invoice our funder directly. They will get paid within 24 hours and will give you the fine art.
5. You then pay a monthly “rental” figure for the term of the lease agreement.
I don’t want to rent the art work, I wish to own it
You will own the art work at the end of the lease agreement. We will ensure this can be achieved.
What happens if we do not keep up with our repayments?
Our funder will contact you to enquire about what the issue is. If this cannot be sorted, the finance company will look to take back the fine art which will be sold to reduce any bad debt potential they may have.
Buy fine art without having to pay upfront
Please call us if you are looking to buy fine art and do not wish to pay upfront for it. We will look to structure a lease up to five years. You get the art today, you can enjoy the paintings and benefit from any price appreciation. Please call our fine art specialist on 01494 611 456 for further information or send an email to firstname.lastname@example.org