Let the bad times roll' could well serve as a slogan for Belinda Kruger's business. While auction houses and galleries are taking a hit in the global downturn, art leasing companies such as Kruger's are benefiting from the overall belt-tightening as managers rent rather than buy sculptures and paintings to boost their corporate image. A few bold souls have even seized the moment to start leasing services.
The managing director of Art-lease.com, which also commissions and sells artworks, Kruger says leasing now accounts for 70 per cent of her company's revenue, up from 30 per cent before the financial crisis hit last September.
'Leasing is budget-friendly and it offers flexibility. Once the economy improves, clients can either buy the leased work or commission something that better suits their purpose,' she says.
Kruger's clientele is mainly commercial - hotels, banks and companies looking to add a touch of class to their offices. Many top executives view having art as a badge of success.
'If you have a good painting, it shows that you have good taste and you know about life and culture,' Kruger says. 'A high-quality painting says a lot about who you are.'
Although banks have had to make severe cutbacks, managers can argue that leasing is cheaper than buying, she says.
