VBank, Nigeria’s digital bank managed by VFD Microfinance Bank, and ARTSPLIT, an art trading technology company, have unveiled a new art-based loan offering that promises to unlock liquidity for millions of art collectors and artist.
Another partner in the scheme is Anchoria Asset Management, which will be working on the art storage and valuation. This innovative financing solution is intended to empower art collectors, galleries and dealers by allowing them to access capital for a variety of purposes by leveraging the value of their artwork.
VBank’s art-based loans provide a unique opportunity for art enthusiasts and businesses to maximise the value of their art collections without having to sell the valuable assets to get liquidity, the promoters said.
This financial product allows borrowers to keep ownership of their artwork while obtaining a loan backed by the value artwork. VBank will offer the loan facility at 30 per cent per yearly with loan limits of N12 million and N60 million for individuals and corporates, respectively, ARTSPLIT will validate provenance, value the artwork and guarantee the loan at a three per cent fee, custodian fee of 0.5 per cent and additional one per cent insurance charge.
This first-of-its-kind offering has several advantages, according to the partners. These include flexible financing as borrowers could obtain loans based on a percentage of the appraised value of their artwork, giving them the flexibility to access capital.
Others are tailored loan terms – each loan is individually structured to meet the borrower’s unique needs – and preserved ownership (borrowers retain ownership of their artwork throughout the loan).
“We are thrilled to introduce our Art Based Loan offering, which bridges the gap between art and finance,” said the CEO of VBank, Mr. Gbenga Omolokun.
“Our ground-breaking solution enables art collectors and businesses to maximize the value of their art assets while maintaining ownership and control. We are confident that with ARTSPLIT and AAM’s expertise and customised financing options, we can help our clients thrive in the dynamic art market,” he said.
