Art leasing: a financing solution for businesses and liberal professions
AFFIRM YOUR IDENTITY AND VALUES – COMMIT TO ARTISTS – INSPIRE YOUR COLLABORATORS – OPTIMIZE YOUR TAXATION
Art leasing is much more than just a financial transaction. It attracts more and more companies every year. It's a smart strategy to enrich your professional environment, optimize your taxes , and assert your corporate identity through culture. It's an open door to the world of art , made accessible and advantageous for today's economic players.
What is art leasing?
Leasing (or renting with an option to purchase) artworks works on a similar principle to leasing vehicles or professional equipment. Instead of purchasing a work outright, you rent it for a set period (usually 12 to 60 months) from a specialized financing organization.
At the end of the contract, several options are available to you:
- Acquire the work for a symbolic residual value, often in the order of 1 to 5% of its initial price.
- Return the work and rent a new one.
- Extend the rental contract.
Leasing works of art has many advantages that make it a particularly attractive solution:
Significant tax benefits
This is one of the main attractions of art leasing. The rent paid is considered an operating expense for the company. As such, it is deductible from taxable income, thus reducing corporate tax. This allows the acquisition cost to be amortized over several years, without significantly impacting cash flow.
Preservation of cash flow and borrowing capacity
By opting for leasing, you avoid a heavy initial investment that could strain your company's cash flow. This allows you to conserve your cash for other operational or strategic needs. Furthermore, since leasing is not a fixed asset, it does not affect your borrowing capacity with banks, leaving you more room to maneuver for other financing.
Beautification of premises and enhancement of brand image
Integrating artwork into your offices, waiting rooms, or reception areas creates a stimulating and refined atmosphere. This helps improve the well-being of your employees and project a modern, innovative, and aesthetically pleasing brand image. Art can be a powerful communication tool, strengthening your visual and cultural identity.
Access to quality works of art
Leasing opens the doors to a broader and more prestigious art market. You can acquire works by established or emerging artists that would otherwise be beyond your budget to purchase directly. This allows you to build a quality corporate collection with long-term appreciation potential.
Flexibility and easy renewal
The duration of leasing contracts is flexible, adapting to your needs. At the end of the contract, the ability to renew your collection by leasing new works gives you valuable freedom. This allows you to evolve your artistic environment according to your desires, trends, or your business strategy.
Support for artistic creation
By opting for leasing, you actively participate in supporting artistic creation. You contribute directly to the vitality of the art market and the development of artists. This is a civic commitment that can also be highlighted in your corporate communications.
What makes art leasing particularly attractive:
- Turnkey solution: Leasing organizations often offer complete support, from the selection of works to their installation, thus simplifying the process for the company.
- Controlled budget: Fixed and predictable rents make budget management easier and avoid unpleasant surprises.
- Valuation of the heritage (at term): If you choose to acquire the work at the end of the contract, you add a valuable asset to your heritage.
- Investment Diversification: For some businesses, art can be seen as a form of investment diversification, although this is not the primary objective of leasing.
Don't hesitate, contact us!
Don't hesitate, contact us!