Enjoying Art as Collateral

Art Capital Group specializes in lending to art owners in need of cash.  The art owners put of their painting as collateral, which Art Capital will sell for a commission and repayment of the original loan in the event of a repayment default. 

The average loan: $5 million with 2 years for repayment.  This means your average art owner need not apply as only serious art collectors will have collateral in the form of art worth this much. 

See Felix Salmon, A visit to Art Capital Group, Rueters Blog, June 10, 2009.