ARTSPLIT Partners VBANK on Art-based Loan
Yinka Olatunbosun
A major financial intervention has arrived on the arts scene with the new art-driven loan offering launched on June 16 in Lagos. Nigeria’s leading digital bank, Vbank managed by VFD Microfinance Bank has partnered with ARTSPLIT, an art trading technology company to launch an art-based loan. With the aim of increasing access to financial solutions, this innovative financial offering will provide capital for art galleries, dealers and art collectors who can leverage on the market value of their artworks.
VBank’s Art Based Loans is indeed a unique opportunity for art enthusiasts and businesses to maximize the value of their art collections without having to sell valuable assets. This financial product allows borrowers to keep ownership of their artwork while obtaining a loan backed by the appraised value of the artwork.
With an offer of loan facility at 30%pa at 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 3% fees, custodian fee of 0.5% and additional 1% insurance charge.
This first-of-its-kind offering has several advantages, including Flexible Financing. This means that borrowers can obtain loans based on a percentage of the appraised value of their artwork, giving them the flexibility to access capital. Also, the art-based loan is individually structured to meet the borrower’s unique needs. It preserves ownership allowing borrowers to retain ownership of their artwork throughout the loan. Another attribute of the loan is the diverse use of funds. Loan proceeds can be used for a variety of purposes, including the acquisition of new artwork, the expansion of art businesses, the support of exhibitions, and the meeting of short-term liquidity needs.
“We are thrilled to introduce our Art Based Loan offering, which bridges the gap between art and finance,” said Mr. Gbenga Omolokun, CEO of VBank, said at the launch held at The Boardroom Apartments, Lekki. “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 & AAM’s expertise and customized financing options, we can help our clients thrive in the dynamic art market.”
ARTSPLIT is an art trading technology company driven by one common goal; enhancing the investment status of African art by allowing users to co-own rare and valuable artworks on a platform that guarantees price discovery and market liquidity. Aside deepening art appreciation, ARTSPLIT also provides opportunities for owners of investment-grade African art to list their works and have them evaluated and sold to members of our community. ARTSPLIT also offers advisory and management services for art collectors, which are personalised to requirements to manage art portfolios online fully and on offline platforms.
