FILM & MOVIE FUNDING 100%

Film finance — contact us about yours.

Film finance is an aspect of film production that occurs during the development stage prior to pre-production, and is concerned with determining the potential value of a proposed film. In the United States, the value is typically based on a forecast of revenues (generally 10 years for films and 20 years for television shows), beginning with theatrical release, and including DVD sales, and release to cable broadcast television networks both domestic and international and inflight airline licensing.

Film finance is a subset of project finance, meaning the film project's generated cash flows rather than external sources are used to repay investors. The main factors determining the commercial success of a film include public taste, artistic merit, competition from other films released at the same time, the quality of the script, the quality of the cast, the quality of the director and other parties, etc.

Methods of Film Financing

Government Grants

A number of governments run programs to subsidise the cost of producing films. States such as Louisiana, Massachusetts, New York, Connecticut, Oklahoma, Pennsylvania, North Carolina, Michigan, and New Mexico, will provide a subsidy or tax credit provided all or part of a film is filmed in that state.

Tax Incentives

Some U.S. states and Canadian provinces have between 15% and 70% tax or cash incentives for labor, production costs or services on bona fide film/television/PC game expenditures. A number of countries have introduced legislation that has the effect of generating enhanced tax deductions for producers or owners of films.

Private Equity Financing

Generally tax-advantaged theatrical film and television investment for affluent individuals comes with little risk. Most often, the cost of production is recouped by a combination of federal and state tax incentives, thereby eliminating most of the risk. Capital is still required as a direct investment (partnerships can be used), but must also be "at risk", which allows § 181 IRC write-offs.

Hedge-Fund Financing

Also known as slate financing deals. Hedge funds have become a significant source of film financing for major studio productions.

Private Investors

One of the hardest types of film financing pieces to obtain is private investor funds. These are funds invested by an individual who is looking to possibly add more risk to his investment portfolio, or a high-net-worth individual with a keen interest in films.

Debt Finance — Pre-Sales

Pre-sales is, based on the script and cast, selling the right to distribute a film in different territories before the film is completed. When the deal is made, the distributor will insist the producers deliver on certain elements of content and cast.

Gap/Supergap Financing

In motion pictures, gap/supergap financing is a form of mezzanine debt financing where the producer wishes to complete their film finance package by procuring a loan that is secured against the film's unsold territories and rights. Most gap financiers will only lend against the value of unsold foreign (non-North American) rights.

Product Placement Financing

Income from product placement can be used to supplement the budget of a film. The Bond franchise is notable for its lucrative product placement deals, bringing in millions of dollars.

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Movie 100% Funding — Film Finance