Sotheby's offers the seller a 7% interest to delay payment of the auction proceeds.

According to a report from three anonymous sources familiar with the matter cited by the Financial Times, Sotheby's auction house is offering sellers a 7% interest rate to defer payment of their auction proceeds. Previously, if the sale amount exceeded $30 million and the seller agreed to let Sotheby's hold on to some of the funds for at least six months, the auction house had promised an 8% interest rate. Due to the impact of last year's rate cuts by the Federal Reserve, Sotheby's subsequently lowered this interest rate. Sotheby's had previously exceeded the agreed-upon timeframe for holding onto some clients' funds. Sotheby's stated, "Our operations follow long-standing market and industry practices, and provide clients with multiple settlement options."