Neil Mitchinson, founder of Edinburgh Asset Finance
The Scottish loan company, Edinburgh Asset Finance, has teamed up with McTear’s 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.
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.
It is widely recognised that the auction process can achieve good results for a seller, however, the administrative timescales can be off-putting to some.
The innovative service – the latest in a line of initiatives by Edinburgh Asset Finance – is designed to bridge the period between the decision to sell and the auction process being fully completed.
The company has partnered exclusively with McTear’s, which was founded in 1842 and sells in more than 100 countries around the world, after successfully using its auction and valuation services
Neil 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 3 to 6 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.
Brian 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.”
New Town-based 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.
It is one of the few companies in the UK and the only one in Scotland offering such a tailored loan platform. The nearest English firm, with which it co-operates, is in Harrogate and most other providers are London based.
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.”
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