The Jim Leedy artwork hanging in the Hotel Indigo is titled “Eternity,” but how it got there signifies cutting-edge innovations in the business of art.
The painting was acquired in October by Emily Abbott, director of creative design for Abbott Properties, which developed the hotel. Located in the Crossroads neighborhood, the Hotel Indigo showcases creations by local artists such as Leedy, who pioneered the Crossroads Arts District.
“We named the bar after Jim Leedy, so it only made sense that we would have one of his larger pieces as the focal point in the bar,” Abbott said.
Abbott bought the painting from the Leedy-Voulkos Art Center through a program known as Art Money. Founded by Australian entrepreneur Paul Becker in 2015, Art Money makes credit available from $1,000 to $50,000 for art purchases.
“It was easy,” Abbott said. “You can set up auto-pay. It’s a simple website and it’s a great idea, because if you want to own a large piece of original art it’s quite an investment.”
Erin Woodworth, gallery manager at Leedy-Voulkos, said Art Money makes it easier to sell art to a purchaser who wants to spread out payments.
“We’ve always offered monthly payments as a way for our buyers to acquire artwork,” Woodworth said. “But that required me to send out monthly reminders and receive those payments. I didn’t like the chasing the money aspect. And the buyer couldn’t take their artwork home until it was completely paid off.”
With Art Money, art purchasers can take possession of their artwork after paying a minimum 10 percent deposit to the gallery. They pay the remaining balance to Art Money over nine months, interest free. The gallery pays a commission to Art Money of up to 10 percent.
To be approved for Art Money credit, applicants must be individuals applying in their own names, with a clear credit history and an income of at least $30,000 a year. The program is not currently available for art purchases by companies, partnerships, trusts, corporations or institutions. (Abbot made the Leedy purchase for Hotel Indigo in her own name.)
Art Money has partnered with more than 850 galleries around the world. The participating galleries in Kansas City are Leedy-Voulkos Art Center, Cerbera Gallery and Weinberger Fine Art.
Cerbera owner Philipp Eirich said Art Money approached him in 2016, when Cerbera was a new player on the local gallery scene. “We were focusing mainly on the local market, on foot traffic. We signed up with Art Money in order to increase volume.”
Eirich decided early on that Cerbera would focus on sales transacted online. “We put a digital marketing plan in place, and Art Money is part of that,” he said.
From a gallery point of view there is almost no risk involved with Art Money transactions, Eirich said. “If someone finances a purchase through Art Money, the dealer gets the 90 percent of the retail value pretty much right away. And if there is ever an issue with the buyer not making monthly payments, that is a problem Art Money has to deal with, not the dealer or the gallery.”
Art Money targets the higher-end market, Eirich said. “Compared to other programs, it generates more sales of artwork priced between $10,000 and $30,000 at our gallery.”
Eirich agreed that the program is easy to use. “There is a phone number to call, or you can do the entire process on your mobile device. You’re usually approved within minutes, especially during regular business hours. At night or on the weekend it might take a little bit longer. The buyer signs the contract with Art Money, and they can take their artwork home.”
Not wanting to reveal too much to his competitors, Eirich declined to say how many of his customers have used Art Money. He said Art Money transactions probably amount to slightly less than one percent of his sales revenues, but he’s glad it’s available.
“This is a tool in the tool box that helps us close a deal,” he said.
Woodworth said Abbott is the only Leedy-Voulkos customer who has used Art Money to date, but she said she’s open to using it more now that she knows the process. “We got paid quickly by Art Money,” she noted.
Most of Leedy-Voulkos’ sales come from foot traffic, Woodworth said. She hopes Art Money will generate more business with younger customers who haven’t saved up a lot of money for art acquisitions.
“The young people down here want to be immersed in the arts and support the arts,” she said. “Art Money is an option for them.”
Meantime, Eirich said demand for Art Money and other financing programs might ramp up if the economy hits a bump. “Art collectors have money to buy art right now. It would be very interesting to see what happens during the next recession.”
