What types of property does ArtLoan lend against?
ArtLoan typically lends on all art-related property. This includes antiques, collectibles, and fine art. Occasionally we will consider other types of property for loans.
Is ArtLoan a fully-licensed, state-regulated lender?
Yes, Artloan Financial Services, Inc. is licensed by the California Department of Justice and by the City of San Francisco. ArtLoan operates under the same kind of licensing required by collateral lenders and pawnbrokers, rather than commercial or private banks. ArtLoan chooses to operate with this type of licensing largely for the benefit of its customers, who are seeking loans on property that commercial banks are often prohibited from lending against. Commercial banks are not accustomed to appraising and evaluating tangible personal property such as art-related assets. Additionally, banking laws and regulations make the handling and storage of this kind of property problematic. Under our California lending license, ArtLoan is able to eliminate most of the ‘red tape’ associated with traditional bank financing and fund loans very rapidly, sometimes the same day, with no regard for a borrower’s cash assets or creditworthiness. Our license also allows us to offer clients non-recourse loans, thereby not pursuing them for non-payment.
Can anyone apply for ArtLoan financing?
Any U.S. citizen who is at least 18 years old is eligible for ArtLoan financing.
If I am married, will my spouse need to sign the loan contract too?
Depending on the property you are pledging, and the size of your loan request, married individuals may need to have their spouses sign their loan documents.
How much can I borrow? Does ArtLoan have any preset maximum loan amounts?
ArtLoan has no pre-established borrowing limits. Generally, you may borrow as much money as you need, depending on the value of your assets.
How long does the application process take?
The application process, which will eventually be accomplished entirely via the Internet, generally takes about 30 minutes, and can be accomplished at your home or office. Applications may be submitted once you have become a Registered Borrower.
How Do I Become a Registered Borrower?
Becoming a registered borrower is easy. For your first loan, you will need to visit our San Francisco office and complete an ArtLoan Signature Card. You will also need to provide a thumbprint. It's that simple.
Once I have submitted a loan application, how soon will I know if it has been approved? How will ArtLoan notify me?
Most loan applications are processed within 48 hours and are submitted to our underwriting department immediately thereafter. In most cases, you will be notified within 5 business days concerning your loan status. For final loan approval, property must be received and inspected at an ArtLoan facility or in situ by an ArtLoan property expert. All loan notifications are sent via email.
Will I need to sign my loan contract in San Francisco?
In most cases your first loan contract will need to be signed in person at our offices in San Francisco. This allows you to meet our management team and to see our facilities. Occasionally other arrangements can be made; you are invited to inquire about off-site signing. Once you have completed your initial loan contract, documents and contracts for subsequent loans may be signed at your home or office, thereby foregoing your need to travel to San Francisco.
Once my loan is approved, how fast will I receive my loan funds?
Final loan approvals and loan dispersals are contingent on property inspection. Once your property has been inspected and you have received and accepted our Approved Loan Offer (usually 7-10 business days), funds will immediately be wired to your bank.
How long is the term of the loan? Can I request a loan renewal?
Loan terms are four months. Clients are eligible for loan renewals provided that all accrued interest and fees have been paid by the due date of the first loan term. All renewals are granted at ArtLoan’s discretion. Clients may request multiple renewals or longer loan terms. Requests for loan renewals must be submitted via email and received during ArtLoan’s regular business hours at least 3 business days (and in some cases, 7 business days) prior to a loan’s due date.
Does ArtLoan lend on property outside the U.S.?
ArtLoan will lend against property located (at the time of the loan application) outside the U.S., however, the property will need to be shipped to ArtLoan’s San Francisco warehouses for safekeeping during the pendency of the loan.
What proof-of-ownership documents will I be required to furnish with my loan application?
Because ArtLoan does not rely on your creditworthiness to secure a loan, it is important that you be able to supply certain documents that establish you as the rightful owner of the property. These documents may include cancelled checks, a bill of sale, a sales receipt from a gallery or auction house, a copy of a will showing you as the beneficiary of the named property, etc. For more details, please see our loan application.
What is the difference between an Equity ArtLoan™ and an ArtLoan Creditline™? Which is best suited to my needs?
An Equity ArtLoan™ is a loan made against an item of personal property. An ArtLoan Creditline™ is also a loan against personal property, however, it differs from an Equity ArtLoan™ in that the borrower is not obligated to take the full amount of the loan until he needs or requests it. This allows you the flexibility of paying interest only on the money you use. ArtLoan Creditlines™ will become available beginning in Fall 2008.
Does ArtLoan consider my creditworthiness when approving or denying my loan? Is my FICO score a factor? My employment? My cash assets?
Tax returns, income verification, credit history, FICO scores, cash assets, and employment do not affect your ability to borrow. Loans are based only on the property you are pledging to secure the loan.
If I own a piece of property worth $50,000, how much can I borrow against it?
Our loan-to-value (LTV) ratios vary from 35 to 90 %, depending on the property you have to pledge, the amount you need to borrow, your desired interest rate, and the term of your loan. In most cases, LTV’s range from 35 to 55%.
What are ArtLoan’s interest rates?
Interest rates vary according to our underwriting procedures for each asset or property type. Typically, interest rates range from 1.2% to 2.5% per month.
Will my property be safe and secure while it is at ArtLoan?
Once your property arrives at ArtLoan, it is stored in a secure, temperature-controlled, humidity-monitored vault or warehouse. Certain property may be stored in a local commercial bank vault. ArtLoan’s warehouse personnel are professional logistics experts. Your property is handled with the same care and attention that you would expect in a fine gallery or world-class auction facility.
Does ArtLoan charge any storage fees?
ArtLoan does not charge any property storage fees.
Am I required to maintain insurance on my property while it is in ArtLoan’s custody?
In some cases, ArtLoan’s underwriting department requires clients to maintain insurance on their property during the pendency of their loan. A one-year paid receipt for a fine arts insurance policy or rider for at least the amount of the loan may be required at loan closing. This depends on the size of the loan, the anticipated duration of the loan, and the property used to secure the loan. Although our underwriting department may not ask you to furnish proof of insurance, we strongly advise all clients to maintain insurance on their property even while it is in ArtLoan's safekeeping.
Once I have repaid my loan, how do I redeem my property?
Once your loan has been repaid, including all applicable interest and fees, you or your appointed agent may redeem your property in person or your property will be returned via the prepaid delivery service of your choice.
