Bridge loans are a means to unlock liquidity in the short term whilst waiting for a sale transaction of either a single piece or an entire collection to conclude. Apollo Collector Services can help you with arranging bridge loans. These loans are usually:
- a bridge to sale that can include both auction and private transactions
- structured for 3-6 months
- are generally more expensive than longer term loans
- are paid off the day the piece is sold
Case StudyA collector seeking to raise funds to buy a house consigned a Jeff Koons work to an auction that would take place in two months’ time, but needed some of the cash ahead of the sale to complete their property purchase.
With the work estimated at between £4m and £6m, they were able to borrow £2m at a rate of two per cent a month, which was paid back in full on the day of the auction from of the proceeds of the sale.