Collectors Can Obtain Loans Secured by Their Art

 

Art Loans pic

Art Loans
Image: trevorcolecommercial.com

Trevor Cole Commercial Corp works with commercial businesses and individuals to help them secure funding for a range of endeavors, including real estate development. Additionally, Trevor Cole Commercial Corp assists borrowers in obtaining loans backed by assets like collectible art and jewelry.

Collectible art is considered an asset. While the process of acquiring such pieces can be costly, the investments can fetch larger sums in the long run. Such assets can also be used to help fund various projects, like business and real estate investments, if the collector takes out a loan against the art.

For these reasons, there are banks and other lenders that provide small loans secured by collectible art. As part of the process of obtaining such a loan, insuring the art can protect both the lender and borrower in case of theft, damage, or default payments, should the lender allow the borrower to keep the art in their home while the loan is being repaid.

In most cases, these loans are only available to those with significant collections worth more than $1 million, although some companies specialize in short-term loans against art valued at lower amounts.

Proper Management of Accounts Receivables

Trevor Cole Commercial Corp. pic

Trevor Cole Commercial Corp.
Image: trevorcolecommercial.com

Trevor Cole Commercial Corp is a commercial structured finance company based in New York. Committed to offering a full range of services, Trevor Cole Commercial Corp advises clients on balance sheet assets and accounts receivables.

Accounts receivable management involves three things: assessment of the creditworthiness of potential customers, setting of suitable credit terms, and setting up efficient cash collection systems. This article will focus on the first two.

Before extending credit to a customer, a business owner must ensure the customer is indeed creditworthy. There are a number of ways to verify this. The first is a bank reference. Ask the customer’s bank to give a statement of fact on the customer’s creditworthiness. Another way is by asking another company that deals with the potential customer for a statement on creditworthiness. A credit reference bureau could give more detailed information on a customer’s credit history. If the customer is a company, check its most recent financial statements to get an idea of its total assets, loan book, and annual revenue.

If the customer is credit worthy and you give the person or entity credit, ensure the terms of the credit are clearly defined. This includes details such as the repayment period, discounts for early payment, the interest charged for late payment, and consequences of default. It is wise to have a credit limit for each customer. Do not give credit past this limit until a trustworthy relationship is established between the two of you.