Submission Guidelines

JimiArt Gallery Corporate Art Leasing Program

Types of Leases

  • Fair Market Value purchase (Operating Lease) - For companies uncertain about purchasing, this plan offers various options during the lease agreement. The plan is particularly beneficial for companies desiring a small security deposit and a relatively low monthly payment. At the end of the lease term, the lessee has the option to extend the term of the lease, return the art, or buy the art at its fair market value. An Operating Lease may allow for the lease payments to be included as operating expenses (in the case of non-purchase) or for capital costs to be deferred to the end of the lease, when a decision to retain or change the art is made.

  • $1.00 Buy-Out - The recommended plan for companies fairly certain they wish to purchase the art at the end of the lease agreement. At the end of the lease term, the art is purchased for $1.00. (A nominal charge for processing the title transfer may also apply

     

  • 10% Security Deposit Plan - This program offers the lowest monthly payment with a security deposit of 10% (of the price of the art.) End-of-lease options are available as follows:

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          The deposit can be applied to the purchase price of the art;

          Extend the term of the lease; or,

          The art can be returned and the deposit refunded.

     

  • 10% Purchase Option Plan - This plan offers the lessee a fixed purchase option at the end of the lease term. End-of-lease options are as follows:

     

         Extend the term of the lease;

         Return the art; or,

         Buy it at 10% of the original Fair Market Value.

     

    JimiArt Gallery offers financing for purchase options.

                                                   

  • Why Lease? - Leasing offers fixed regular payments; provides financing for 100% of the art cost; conserves both working capital and lines of bank credit; and may offer certain tax advantages.

     

  • Who Can Lease? - Any company, organization, or association.

     

  • What Is the Process for Leasing Art? - We review the credit information supplied on the lease application. Upon approval, JimiArt Gallery prepares the lease agreement. When the art is delivered, we begin billing the lessee for the agreed upon lease payment.

     

  • Is A Down Payment Required? - A security deposit, usually equal to one or two months lease payment, is generally needed. This differs from a down payment in that the amount is typically much smaller and it is a deposit which may be applied to the purchase price of the art at lease-end, or returned if there are no other payments due.

     

  • How Are Lease Payments Determined? - The monthly payment is based on the term of the lease price of the art and the type of leasing plan chosen. The term of a lease may run from 12 to 60 months or 3-12 months depending on plan requested.

     

  • What Factors Are Used To Determine Credit Worthiness? - Type of business, length of time in business, financial condition, references from financial institutions, and Dun & Bradstreet (D&B) or other credit bureau ratings.

     

  • Can the Lease Be Canceled? - No, but art can be traded for other leased art before the expiration of the initial term. We also offer a special rate for "buy-out" options during the term of the lease.

     

    Fine Art Leasing and Rental

    The art leasing, rental and time payment programs at JimiArt are a convenient and economical way for clients to build art collections for the home or office. As no outside leasing or finance company is involved, all agreements are strictly between JimiArt and the client. Any single work of art or group of art with a combined value of $500.00 or over may be leased or rented.

     

    Art Lease with Buyout

    JimiArt's monthly lease payments are based on 5% of the retail value for 12-60 months, or 15% of the retail value for a 3-12 month lease of the artwork.  The lessor has the option to buy-out the lease on the first, second, third, fourth or fifth anniversaries.  The minimum term of the lease is 3 months.

     

    Lease Example on a 5% Lease

    $10,000     Retail Price Including Frame

    $250.00     Monthly Lease

    $8,000.00                 1 Year buyout at 80% of Original Value

    $6,000.00                 2 Year buyout at 60% of Original Value

    $4,000.00                 3 Year buyout at 40% of Original Value

    $2,000.00                 4 Year buyout at 20% of Original Value

    $1,000.00                 5 Year buyout at 10% of Original Value

    Fine Art Rental

    The monthly Art Rental payment is based on 25% of the retail value of the artwork. The minimum rental period is 6 months, unless the artwork is purchased within the first 6 month period. In this case, up to three monthly rental payments will be applied to the purchase price. If the artwork is not purchased within the first six months of the rental, the option to purchase lapses. At this point, it becomes a straight rental with no option to purchase. This plan works well when a client is interested in an artwork but would like to try it at home for a few months before making the final decision to purchase.


     

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