Suros Capital, the luxury asset-backed short-term lender, has used contemporary artwork as the basis for a loan to save a client’s overseas property purchase.
The lender advanced funds within four days of the initial enquiry from the client’s financial adviser.
The client’s property purchase had a fixed completion date, but the original lender insisted on providing additional income information, which meant that the deal would not be done in time.
The client had put a contemporary artwork into auction, but because the next specialist auction was not scheduled for another three months, they instead borrowed against the artwork with Suros Capital.
Making use of its ‘Advance’ product, which was designed to provide immediate funding for those looking to sell luxury assets at a future auction, Suros Capital advanced £450,000 against the agreed painting valuation.
Ed Blackmore (pictured), business development director at Suros Capital, said: “This case proves that advisers should not give up if conventional sources of funding prove to be inadequate.
“Once our introducer realised that the client had artwork that he was trying to sell, one call to Suros Capital opened up the path to a solution that meant that his property purchase went ahead whilst also keeping control over the sale of his artwork when the auction takes place.”
