“We lend against everything with clear attribution and a strong market”

Thomas González has always had a passion for art. Today, he arranges art loans and has committed himself to the art loan business. He has developed a trusted cadre of financial partners, responsible for successfully brokering art loans above $133 million. We, at The World Art News, have had the pleasure of interviewing Thomas to learn the ins and outs of being an art banker. In this two-part series, you will discover his secrets to running a successful art loans business.

This time, in Part 2 of our exclusive interview, Thomas González will talk about the differences between the art and financial worlds, share with us how art loans change lives, and tell our readers how to get started as an investor in the global art market.

PART 1: Exclusive Interview with an Art Banker, Thomas González

Can you elaborate a little more on the difference between the art and the financial world and how you were able to bridge that gap?

Bankers believe in numbers and market figures, while those in the art world focus on the quality of an artwork, its visual power, and its history. Both perspectives are valid.

How do you convince a banker to lend money against art and why don’t more banks offer such services?

The toughest part of my career was building confidence, step by step, on both sides: with funding partners and art clients. It was akin to constructing a brick wall, adding one brick at a time, one loan at a time, until trust was established. Unlike the rapid growth seen in the tech world, where companies can grow 20 times overnight.

I believe there is a massive market for art loans, but the barrier to entry is high for banks, as it’s akin to navigating both fresh and saltwater. Only a few entities can navigate both successfully.

“Loan by loan, I got better”

What sacrifices did you have to make to become successful in this business?

As someone who loves and lives for art, it’s been a challenge to dedicate time to matters outside of the art world. As an art dealer, I spend a significant amount of time immersed in art, whether it’s in libraries or museums.

Do you work solely with paintings or do you also deal with antiques and collectibles such as furniture, pottery, automobiles, or sports memorabilia?

We primarily focus on fine art, including paintings, drawings, and sculpture from the 20th century. As one of the few lenders, we also engage with Old Masters. However, we’re open to considering any other collection field as long as there’s a robust and stable auction market.

Do you prefer working with art dealers or private collectors?

This is a question I often receive. Personally, I don’t see a significant difference between the two. Dealers always maintain a private collection, and private collectors frequently buy and sell artworks.

Should an average person who inherited, discovered, or unknowingly purchased a very expensive artwork but may not have the funds to cover interest contact you?

The primary motivation for taking a loan is always to improve the client’s situation, often to buy time to sell artwork at a favorable price. Managing interest payments isn’t typically a problem, as a portion of the loan amount can be allocated to cover them.

“The motivation to take a loan is to improve the situation of the client”

Are you planning to lend money against NFTs, and what is your opinion of this new art form?

I believe in NFTs for video art and photography, but at the moment, I would not lend against NFTs.

What advice would you give to young art entrepreneurs or anyone that doesn’t have a lot of money, but wishes to get into the art business?

The truth is you can achieve anything you want, but you need to put in a lot of hard work, possess enthusiasm, and master endurance. Most importantly, enthusiasm is what most people lose with time, even the very successful ones. Remember how enthusiasm opens a lot of doors, everything else you learn on the job. 26 years ago, I started with no money, no knowledge, no contacts in a small town in Germany.

What advice would you give to someone who has substantial wealth and wishes to partake the art business for the first time?

Like in real life, there is no dry run. Just dive in. Once you are financially engaged, you will research much deeper, look at different comparable pieces, auction results, museum shows, etc. Experience how art changes your life. Start with established artists if you can afford it.

Is it dangerous to be a high-end art banker and what is your opinion of the art world in general, is it a safe place to do business in the 21st century? And has it gotten less or more safe over your lifetime?

The art market has become much more transparent with the internet, auction databases, and the art foundations. Also, companies such as ArtLossRegister.com help a lot. Up to the eighties, all of this information was for professionals and insiders. Up to the seventies, if you were a private collector, you wouldn’t even be part of a public auction. Christie’s and Sotheby’s catalogs weren’t online. They didn’t even have images. Back then, you asked a dealer to buy something for you. Today this is unimaginable! Transparency is vital and gives much more security, especially for new participants.

“Transparency is vital”

Your art education helped you attain great success. Would you recommend others follow in your footsteps, or would a financial education be a better choice, should someone wish to become an art banker like you?

Banking is deeply rooted in measurable reality, where skills in mathematics, physics, and logic are crucial. Conversely, the arts, such as painting, music, dance, and literature, inhabit a realm not bound by numerical measurements or logical rules. You excel in what you’re naturally inclined towards. Thankfully, I work alongside talented colleagues who handle the banking aspects. For those interested in the art side, it’s essential to immerse oneself in the art market. Many prominent galleries actively seek individuals with a solid understanding of art market dynamics.

How can someone with humble beginnings enter the elite world of art?

One can start by applying for positions in galleries, auction houses, or art-related media companies. It’s vital to absorb as much knowledge about the art market as possible, including reading extensively, visiting museums, attending fairs, and exploring shows. Approach key figures in the industry, ask questions, and demonstrate enthusiasm. Enthusiasm and motivation are paramount, as much of the learning occurs on the job.

“Dare to ask questions”

Is art banking an exclusive world? Do you have to actively look for clients, or do they find you?

Finding good clients is always hard work. Otherwise, everybody would be in my business.

What skill set must you possess to be a good art banker? Foreign languages, knowledge of art and history, top-notch math skills?

You need to have a solid understanding of 20th-century art history and the art market dynamics. While most people speak English, learning how different countries conduct business is essential. For example, a New York dealer might be cordial and slightly eccentric, while a London-based British dealer tends to be polite and subtle in communication. Italians are charming hosts, but deciphering the reliability of their statements can be a skill in itself. Negotiations often involve nuances that require astute observation.

You’ve paid out over 111 million euros in art loans. With the ever-expanding art market, do you see half a billion in your near future?

Currently, people lend against only a tiny percentage of blue-chip artworks, so this market has significant potential for growth in the future.

Does this business require travel?

Yes, it does, and I love it. This aspect sets it apart from the finance world. While banking often involves a more institutional approach, the art world is deeply personal. Clients often become friends, making every interaction unique.

“Clients often become friends”

How has COVID impacted your business?

While our business also operates online, I deeply miss traveling, meeting people, and experiencing art in its original form.

What types of art do you prefer to lend money against the most?

We prefer to lend against artworks with clear attribution and a strong market presence. Most of the pieces we work with are blue-chip 20th-century artworks.

From your experience, what types of art will appreciate the most over the next decade, and what would you recommend art investors should invest in?

It’s challenging to predict with certainty. Antiques and Old Master paintings saw a significant decrease in value over the past decade, but I believe these markets will rebound. Many of these artworks have endured for centuries.

Do you collect art, and if so, can you share anything about your most interesting pieces?

I collect early and antique art. As I respond to this interview, I’m seated at my French 18th-century secrétaire à abattant, a piece I hold dear.

What are your top three most favorite artworks and artists of all time, and why?

Narrowing it down to just three is difficult; there are countless artworks and artists I admire. That’s the bittersweet reality of life—realizing the abundance of possibilities, but constrained by the limits of time.

What books about art, money, or wealth preservation would you recommend to our readers?

There are numerous valuable books on these subjects. I authored two books myself 21 years ago. For those new to the art market, I suggest seeking advice from reputable art dealers to help expand their portfolio.

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