Luxury asset-based lender Edinburgh Asset Finance has entered into an advance auction loan agreement with auction house McTear’s.
Edinburgh Asset Finance, which was founded by Neil Mitchinson in 2013, will provide the only service based in Scotland whereby people selling valued possessions at auction can obtain an immediate cash advance while their sale is going through. The move is intended to make the decision to sell at auction more appealing to sellers of high end goods such as fine art, whisky, jewellery and other valuable items.
Go deeper with GlobalData
The company has partnered exclusively with McTear’s, which was founded in 1842 and sells in more than 100 countries around the world.
Mitchinson 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.”
As an example, a painting valued at £10,000 might go to auction with a reserve of between £8,000 to £10,000. Edinburgh Asset Finance could advance up to 60% of this valuation at the point of decision to sell, knowing that McTear’s will secure a sale.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataBrian Clements, managing director and auctioneer at McTear’s, said: “Selling at McTear’s Auctioneers is always preferable to a direct sale as competition between bidders in multiple countries will result in a better return.
“Due to administrative processes, however, 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.”
Edinburgh Asset Finance offers its non-auction portfolio of clients instant loans from £1,000 to £500,000, secured against a variety of assets, including rare and vintage cars, racing motorcycles, private and commercial marine craft, art, jewellery and watches.
Mitchinson said: “Personal asset finance is one of the very few regulated ways in which individuals can raise capital quickly and discreetly, without the need for lengthy affordability assessments and without affecting their credit record.”
