Half of non-bank art lenders experienced loan defaults in 2024, up from 17 percent in 2022, according to the Art and Finance Report 2025 by Deloitte Private and ArtTactic. The report notes that while the wider art market has shrunk since 2022—sales fell 12 percent to $57.5 billion in 2024—the market for art-backed loans has grown to an estimated $33.9–$40 billion. Non-bank lenders are increasingly taking on riskier clients, with some charging over 15 percent interest, while private banks reported zero defaults in 2024.
The rise in defaults among non-bank lenders signals a growing divide in the art lending market between high-quality collateral and riskier assets. As the art market contracts due to falling demand from Asian buyers and economic uncertainty, lenders are forced to issue margin calls or let loans default. However, the overall growth of art-backed loans—projected to reach $50.1 billion by 2027—indicates that art remains a significant financial asset class, even as lenders become more cautious about which artworks they accept as collateral.