Thomas Reinshagen
Art-backed loans and art leasing in Switzerland
When art lending or leasing really makes sense
An art-backed loan lets you borrow against your art collection without selling it: a Swiss private bank accepts the works as collateral, and they remain your property. I structure art lending and art collection financing independently of the lender – from valuation to the loan-to-value discussion.
Both models solve different problems. They become the right choice in situations like these:
- You need liquidity without selling a work. The classic case for an art loan: the collection serves as collateral, you receive capital for an investment, a tax payment, or another wealth decision. The work remains in your ownership.
- The current market cycle does not fit. Selling now would destroy value. A loan bridges the gap; the work is sold later at a better moment – or kept.
- You want capital to work, not to be withdrawn. Several wealth components need investment capital. Instead of dissolving the collection, you let it work.
- A company wants to display art without owning it. The classic case for art leasing: office spaces, reception areas, representative spaces. Works are rented for a defined period, then returned, exchanged or purchased.
- Balance sheet or tax structuring. A leasing model is preferred over acquisition when the tax or accounting treatment is the better fit. Here we work closely with your tax adviser or trustee.
- Collection rotation for private collectors. Some collectors want to change works regularly without buying each one. Leasing allows that, with clearly defined exchange options.
How art lending and art leasing differ
Aspect
Art Lending
Art Leasing
Ownership
Remains with you. The work serves only as collateral.
Stays with the leasing provider. You use the work in return for a monthly fee.
Purpose
Use without purchase obligation
Location of the work
Remains with you or in a bonded warehouse (depending on the bank)
Used by you (office, residence), but owned by the leasing provider
Term
Usually 12 months to 5 years, renewable
24 to 60 months, with renewal or buy-out option
Costs
Interest on the loan amount, valuation fees, storage
Monthly leasing fee, possibly a final payment on buy-out
Tax treatment
Interest typically deductible, the tax value of the work stays with you
Leasing fee deductible as a business expense, depending on the model
Risk of a fall in value
Yours (the work is yours). The bank may request additional collateral.
With the leasing provider.
Aspect
Art Lending
Remains with you. The work serves only as collateral.
Purpose
Location of the work
Remains with you or in a bonded warehouse (depending on the bank)
Term
Usually 12 months to 5 years, renewable
Costs
Interest on the loan amount, valuation fees, storage
Tax treatment
Interest typically deductible, the tax value of the work stays with you
Risk of a fall in value
Yours (the work is yours). The bank may request additional collateral
Aspect
Art Leasing
Ownership
Stays with the leasing provider. You use the work in return for a monthly fee.
Purpose
Use without purchase obligation
Location of the work
Used by you (office, residence), but owned by the leasing provider
Term
24 to 60 months, with renewal or buy-out option
Costs
Monthly leasing fee, possibly a final payment on buy-out
Tax treatment
Leasing fee deductible as a business expense, depending on the model
Risk of a fall in value
With the leasing provider.
How an art-backed loan works
Which works qualify
Banks and specialised lenders do not finance every work. What matters: market breadth (is there a liquid secondary market?), traceable provenance, documented condition, and a value that can be verified. Works by established artists from a mid six-figure market value upwards are the most common case. Watches, jewellery and classic cars are also accepted as collateral, each with its own valuation standards.
Loan-to-value vs market value
Banks typically lend 30 to 50 percent of the documented market value. The remainder is a safety margin against value fluctuations. For very liquid works (top brands, established auction categories) higher ratios are possible. For specialised works, the ratio tends to be lower.
Terms, storage and repayment
Interest is based on the upper end of Lombard rates and is negotiated individually. Storage depends on the bank: either with you under insurance conditions, or in a bank’s bonded warehouse. Early repayment is usually possible at any time, with reduced early repayment fees at some banks.
How art leasing works
Operating lease (standard leasing)
You pay a monthly rate over an agreed term. At the end, the work returns to the leasing provider. Often used in corporate contexts for office art, or by private collectors who want to rotate works.
Finance lease (with purchase option)
Economically similar to a financing arrangement. You use the work, pay the instalments, and at the end of the term you can acquire it at a defined residual value. Often tax-attractive because the instalments are treated as an expense.
In both cases, the question is what happens at the end of the term: return, extension, buy-out or exchange. This is regulated in the contract from the start, not ad hoc.
Which objects and collection categories qualify
Art
.
Art
Luxury watches
Brand-name watches,
collector’s editions,
vintage pieces
.
Luxury watches
Jewellery and gemstones
Designer and couture jewellery, signed pieces, loose stones
Jewellery and gemstones
Classic cars
Historic vehicles,
concours quality, collector’s lots
Classic cars
Wine collections
Premium wines, en primeur stocks, private collections
Wine collections
How the engagement runs
Confidential first conversation
We clarify your situation, what the liquidity is for (or how the work will be used), and whether a loan, a lease or a combination is the better way. Free of charge, no obligation.
➝ 30 to 45 minutes.
Work verification and valuation report
Inspection of works, documented valuation. For works with a current report, this step is shorter. ➝ 1 to 4 weeks.
Lender or leasing provider selection
I identify the banks or leasing houses that fit your works and your terms, request offers and compare them. ➝ 1 to 3 weeks.
Negotiation and contract
Terms, term length, collateral, termination, buy-out. I negotiate on your behalf, not for the other side. ➝ 1 to 4 weeks.
Execution and continuing support
Storage, insurance adjustment, documentation, annual value updates over the term where needed.
Who this is for
- Private collectors with significant collection wealth who need liquidity for other investments or personal circumstances, without parting from a work
- Family offices and multi-family offices that want to structure art as collateral in their asset allocation
- Companies that want to display high-value art without carrying it on their balance sheet, or who want to transfer an existing art inventory into a leasing structure
- Banks and private banks that need an external, independent appraiser for their clients’ art collateral
- Lawyers and trustees in mandates where liquidity without a sale is better than a forced sale
Why clients work with me
- Over 30 years of market experience in the art and luxury goods business.
- Former Senior Director at Sotheby’s Zurich.
- Accredited adviser to leading Swiss private banks. Valuations and collection documentation are recognised by tax authorities, insurers and financial institutions.
- Vendor-neutral. I have nothing to sell you. My fee comes from you, not from galleries, auction houses or insurers.
- My own collector practice. I have collected myself for over 30 years across several categories (art, photography, watches). Building a collection is not only my work but my own experience.
- Multilingual. German, English, French, Spanish.
- Discretion as standard, not as a promise. Mandates are never cited as references, works are not shown, clients are not named.
Frequently asked questions
How much can I get for a work?
Does the work stay in my ownership?
What happens if the market value drops during the term?
Where is the work stored during the term?
What does an art loan cost?
What happens in the event of default?
Are art loans tax-recognised?
Ready for a conversation?
Direct contact:
+41 79 293 46 85
reinshagen@thomasreinshagen.com
Contact form
Services
Art and luxury valuation
Collection strategy and management
Buying and selling of luxury goods
Art lending and art leasing
Contact
- Thomas Reinshagen
Art and Luxury Consulting
Dufourstrasse 26
CH‑8702 Zollikon - +41 79 293 46 85
- reinshagen@thomasreinshagen.com