About
Having a premium asset can lead to an investment opportunity cost whereby leverage on a blue chip painting could mean a lower risk rather than placing further load on existing debted assets. Bridge lending serves this purpose to where clientele can 'open' and 'close' a facility knowing that they can repay short term debt with future liquidity e.g from a sale elsewhere or future deal closure. Bridge lending is a short term product the maximum term is 24 months.
As long as there is a clearly defined exit strategy for repaying the funds interest can be deducted from the net loan allowing fees to be realised before loan disbursement .Verta Associates can help provide such diversification for short term lending to exiting the loan by
- Loans secured by art assets scheduled to be sold
- Useful if acquiring future blue chip painting and take advantage of being a first mover
- Can be used for pre-auction finance on sale of another art asset.
- Create liquidity in advance of a sale
- Tool for sale of assets for estate planning purposes
