You want to make a feature film and are committed to making it happen whatever it takes? The film industry is focused on mass entertainment to the tune of over $15 billion dollars each year, the two major marketing variables are the Stars/Actors and the Directors. But many potentially great filmmakers never see their films completed, most often this is due to a lack in the funds needed to complete their storytelling.
Freedom Financial Solutions can help accomplish your goals and reach your financial needs. In the area of film production financing, Freedom Financial is responsible for negotiating and documenting a wide variety of financing transactions. Freedom Financial can assist with any of the three stages in the motion file process: development, production, including pre- and post-production and distribution. Our firm’s experience in the area of entertainment and film production financing allows us to skillfully represent both borrowers and lenders.
On the borrower’s side, we work with you to prepare the investor’s package, which can include the Business Plan and full budget, explaining the above and below-the-line numbers, and additional required documentation to ensure a smooth transaction. On the lending side, we have represented a variety of banks (including banks acting as administrative agents for syndicates of lenders), private investors and hedge funds. In addition our firm offers clients access and familiarity with capital markets. Film funding options go much further than just Film Investors.
5 Methods of Film Financing
There are 5 main methods of financing the production of a film:
- Private Equity and Hedge Funds
- Government Grants;
- Tax Incentives;
- Debt Finance; and
- Equity Finance
There are a lot of creative ways to finance movies these days. We offer two main types being conventional and non conventional. Nowadays conventional involves an investor coming in with cash, typically 50% to match already existing money raised and will have a 50% equity stake of the investors portion of the movie.
Conventional vs. Non-Conventional Movie Financing
Our nonconventional movie financing involves as little as 10% to raise a full budget and is returned once the budget needs are met. With this process funds are placed into an escrow account but not until all agreements are reviewed, redlined by the client’s attorney and signed. It is a dual signatory account as it takes both the clients and lenders signatures prior to any funds being withdrawn. This prevents the lender from taking any of the funds out. The client’s funds will be transferred into a deposit account at top bank where the client or the client’s attorney will have cosigning authority over any depletion, withdrawal or encumbrance placed on funds until the return of Cash Deposit. No funds will be depleted from the deposit account without prior written authorization of the client or the client’s attorney. The term sheet and loan agreement is provided once we see a complete package and Proof of Funds no more than 3 days old. Also the client will be speaking with the lender prior the agreements are sent to them. The clients deposit is returned in full with interest at the completion of the film funding process.
How Film Financing Can Make Your Dream a Reality
Film financing is a tremendous concern for aspiring filmmakers. As children the desire to create naturally takes root and ignites the creative work of individuals. Some fulfill their creative drive by making beautiful music. Others allow their creativity to be translated onto vibrant canvases. A few bold souls set out to create a masterpiece in film.
Producing a film enlists many skills requiring the film’s producer to grow and expand beyond their comfort zone. Learning so many new skill sets while undertaking such a huge endeavor can seem overwhelming. Film financing is one of the primary obstacles for filmmakers. The process of finding, pitching and securing the capital necessary for film productions can be an overwhelming task.
Film Financing Costs
The cost of creating a film from start to finish can range anywhere between twenty thousand to twenty million dollars to make depending on the vision of the project. A large percentage of aspiring filmmakers do not have the capital to bring their creative work to completion. Partnering with an experienced film-financing firm can boost the momentum of the project by removing the stresses of financial hardship and allowing the producer to focus solely on the work. Our firm has a decade of experience in creating unique and dependable cash flow solutions for film financing.
We utilize both conventional & non-conventional methods to finance films. These methods include the conventional approach of an investor providing cash to match the projects existing capital. Our firm also employs non-conventional methods where deposits are placed into an escrow and managed by a stringent co-signing process. Upon the completion of the film the client’s deposit is returned in full with interest.
If you’re preparing to embark on a film making venture learn how our film financing solutions can support your blockbuster ambitions. Call 1-877-227-4354 to discuss your project with our finance specialists.