A collateral loan company has teamed up with McTear’s auction house to provide a first-of-its-kind service aimed at bridging the financial gap for auction sellers.
Edinburgh Asset Finance, which offers secured loans against luxury assets, will provide what is believed to be the only service based in Scotland that allows those selling “high end goods” at auction to obtain an immediate cash advance while the sale of an item is still being finalised.
The service, an exclusive partnership with the Glasgow-headquartered auctioneer, is designed to bridge the time gap between the owner’s decision to sell and the auction process being fully completed, which can take up to several months.
For example, if a painting valued at £10,000 goes to auction with a reserve sale value of between £8,000 to £10,000, this new arrangement would mean that Edinburgh Asset Finance could advance up to 60 per cent of this valuation at the point of decision to sell, knowing that McTear’s will secure a sale.
Neil Mitchinson, who founded the loan provider in 2013, said: “In a number of cases, items come to auction because the seller is looking for a quick financial return.
“However, the sale item must be submitted some considerable time before auction to allow the auctioneer a period for sale preparation and catalogue publication.
“After the sale has gone through, it can take anywhere from three to six weeks after the auction before the proceeds are paid out to the buyer. Our auction advance loan service is intended to cover this necessary period.”
McTear’s was founded in 1842 and currently sells in more than 100 countries.
Brian Clements, managing director and auctioneer, added: “Due to administrative processes it can take a few weeks for sellers to see the results, which is where the service offered by Edinburgh Asset Finance comes into its own.
“Edinburgh Asset Finance have been providing a valuable temporary liquidity facility for high end clients for some years now and we are delighted to partner with a firm which shares our values of openness, transparency and fair-dealing.”