What are the different types of loans one can access for a film and how are they structured? Are there any loan best practices the banks or lenders tend to follow when administering loans?
What a great question, Kevin! Film financing can be quite a mystery. There are a handful of debt-financing options available to filmmakers. When putting together a financing plan for a project, it's usually a combination of debt and equity-based financing. For example, a loan against your tax credits or rebates, loans against a minimum guarantee deal, traditional loans from the bank, some even mortgage their homes (not advised). There are many creative ways to create a financing plan. The first step, is making sure your project is "finance ready". Once you are confident your project is finance ready you can tackle your finance plan step by step. Feel free to send me a message to see if your project is there. and what a finance plan looks like.
This is a great question, Kevin Jackson, and sage advice back from Keely Kemp along with the generous offer to review your project. Always love seeing the support in the community.
Also, Kevin - if you want a recommendation on Stage 32 Certification courses on film financing agreements email me at edu@stage32.com and I'll send you the info.
What type of film are you developing (if you can share)?
The general types of commercial loans for film and tv include: financing film tax credits, financing international territory (unsold) sales contracts and banking distribution contracts (Gap Financing). Mezzanine debt was once somewhat available which has now diminished (high priced loans that convert to equity upon default.) These all require extensive documentation and in the latter cases seniority as collateral. For more info contact me via: www.FilmBudget.com Worldwide
4 people like this
What a great question, Kevin! Film financing can be quite a mystery. There are a handful of debt-financing options available to filmmakers. When putting together a financing plan for a project, it's usually a combination of debt and equity-based financing. For example, a loan against your tax credits or rebates, loans against a minimum guarantee deal, traditional loans from the bank, some even mortgage their homes (not advised). There are many creative ways to create a financing plan. The first step, is making sure your project is "finance ready". Once you are confident your project is finance ready you can tackle your finance plan step by step. Feel free to send me a message to see if your project is there. and what a finance plan looks like.
I found this great article from Entertainment Partners that explains the various loans associated with production finance: https://www.ep.com/blog/the-beginners-guide-to-production-financing/#:~:....
2 people like this
This is a great question, Kevin Jackson, and sage advice back from Keely Kemp along with the generous offer to review your project. Always love seeing the support in the community.
Also, Kevin - if you want a recommendation on Stage 32 Certification courses on film financing agreements email me at edu@stage32.com and I'll send you the info.
What type of film are you developing (if you can share)?
2 people like this
The general types of commercial loans for film and tv include: financing film tax credits, financing international territory (unsold) sales contracts and banking distribution contracts (Gap Financing). Mezzanine debt was once somewhat available which has now diminished (high priced loans that convert to equity upon default.) These all require extensive documentation and in the latter cases seniority as collateral. For more info contact me via: www.FilmBudget.com Worldwide