Sotheby’s Financial Services makes both cash advances against consignments and the traditional direct loans to clients. Photo: iStockphoto/Getty ImagesLarge auction houses have long offered loans to their “art rich, cash poor” clients, using a piece of art, jewelry or other collectible as collateral. And the perk can give auction houses a competitive advantage over art galleries—which typically don’t offer cash advances on consignments—by putting money in the seller’s pocket right away. Mr. McCabe says cash advances are a “courtesy” available to certain consignors who make the request. The perk doesn’t appear to be catching on with art dealers, however, who tend to not give cash advances on consigned pieces.

Source: Wall Street Journal March 27, 2017 02:37 UTC