ONLINE fine instrument and bow auction house Tarisio has launched its own peer-to-peer proposition, offering investors the chance to provide bridging finance to musicians.
Tarisio Bridge Financing allows investors to offer buyers short-term loans in order to purchase the instruments from one of Tarisio’s auctions.
According to the auction house, which is based in New York and London, the proposition is a chance for “philanthropically-minded investors to assist musicians in purchasing an instrument or bow”.
Investors must be accredited in order to take part, and invest a minimum of $50,000 (around £38,000). Every six months investors receive a summary of the allocation and deployment of their funds, as well as the total interest earned.
The loans come with a flat interest rate of 0.83 per cent per month, range in value from $10,000 to $50,000, and are worth a maximum of 50 per cent of the value of the instrument.
They are secured against the value of the instrument or bow. If the borrower defaults on the loan, it will be resold at auction, with the investor first in line to receive the proceeds.