Make Your Art Pay: Innovative Art Lending and Rental Solutions in a Challenging Market

Art isn’t just something to hang on your wall and admire; it can also be a powerful financial asset. In today’s art market, collectors face unique challenges and opportunities. While the global art market has seen a downturn, with fine-art auction sales down nearly 30% in the first half of 2024 compared to 2023, innovative financial solutions are emerging to help collectors monetize their art without selling in a depressed market.

At Novela Law, we specialize in guiding clients through these complex waters, offering expertise in art lending and introducing a groundbreaking rental option through our founder’s new venture, Alevon.

Art Lending: Unlocking Liquidity

Art-backed loans remain a viable option for collectors seeking to leverage their assets:

• Typical Loan-to-Value (LTV): 50% of the appraised art value
• Preferred Collateral: Lenders favor a diversified portfolio over single pieces
• Interest Rates: Usually 3.5-7.5% above SOFR, with non-recourse loans at the higher end

Our firm assists in structuring these loans, negotiating favorable terms, and ensuring all legal aspects are covered, from UCC filings to insurance coordination.

Introducing Alevon: A New Frontier in Art Monetization

We’re excited to announce that our founder, Daniel Novela, has launched Alevon, an innovative platform allowing art owners to rent out their collections. This opens up new possibilities for generating passive income from your art, even in a challenging market.

How Alevon Works:

• Lease your artworks to individuals, businesses, or institutions
• Generate income from short-term or long-term rentals
• Retain ownership while profiting from your collection

Why Consider These Options?

• Access to Liquidity: Obtain capital without selling art in a down market
• Retention of Appreciation Potential: Benefit from future market improvements
• Diversification: Use obtained capital to invest in other asset classes
• Opportunity for Acquisition: Leverage funds to acquire new pieces at potentially favorable prices

Let Novela Law Guide You

In this challenging market, art finance and rental options provide ways to monetize your collection while retaining ownership. Whether you’re considering an art-backed loan, curious about rental opportunities, or looking to implement a comprehensive strategy. We’re here to help.

Our expertise, combined with Alevon’s innovative art lending platform, offers a unique approach to making your art work for you. Contact us today to explore how we can help you navigate these exciting opportunities and make smart, strategic decisions for your art collection.

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Alevon was recently featured in Florida Design’s Miami Edition

Categorised in: News

This post was written by Daniel Novela