How to get Your Banker to say Yes, for a Loan or Collateral backed by Verdult Art.
Sunday, October 18, 2009 at 11:13AM
We receive many emails and calls from people explaining that they want to use a Verdult painting for collateral but they are having problems.
Once we ask some basic questions, we find out the problem. Most people seeking to use their art for collateral for whatever reason fail to do their home work and are not knowledgeable about the asset that they do have. This lack of knowledge severely reduces the chances of receiving any sort of serious consideration in using their art for collateral.
Why? Most assume that art is like other major asset classes, stocks, bonds, real estate, and cash and that its value is fully transparent. In other words, though art is swiftly moving toward total acceptance and there have been many studies on this point, art is not there yet. Art by Rembrandt, Picasso, and Warhol are virtually transparent and easily tradable, most art is not.
What should you do if you want to use Verdult art as collateral? Take these steps.
1) Make sure you have the proper basic documents.
Documents include the Certificate of Authenticity (COA) and Bill of Sale or Certificate of Provenance.
2) Make sure that you have a bio of Verdult.
There are all kind of people, and arm chair quarter backs who know very little about Verdult, or what they do know is not accurate. So an Official Bio (either a short bio or extended bio) gives you a ready reference to prove and support your position that Verdult art work is world class and worthy of use as collateral.
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