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Film Financing and How to Finance a Film?

One of the basic needs to produce a film is “finance.” A filmmaker or a producer needs enough finance and a budget to produce the film; without enough finance,fthefilm’sproductionm cannot take place in the right condition. Film finance is one of the important aspects of pre-production and post-production of the film. Different wealthy investors in the market are willing to invest in finance and funds in potential and worthy movies. All the filmmaker needs to do is pitch the ideas and the film’s structure right to the investors. There are different companies in the market who help filmmakers raise enough funds for the film production. Visit https://www.yell.com/biz/red-rock-entertainment-borehamwood-8705107/

The investors make investments in huge films and independent filmmakers if they find the content right and relevant to be an asset in the future. The investor only invests with the point if the investment profits from them in the long run. The filmmakers must make the right pitch in front of the investors to drive them towards the filmmaker’s content or movie.

How to finance a film?

  • One of the famous ways to finance a film is to find potential investors willing to invest in the film. The private investors are provided with the equity share of the film’s profit made. Interest on the number of money invested will be delivered to the private investors of the film. The filmmaker needs to pitch the ideas correctly to attract more potential private investors to invest funds in the movie.
  • The filmmakers can borrow money from the bank as loan/gap or bridge financing, which will be later paid back to the bank. In this case, the filmmaker doesn’t need to share the movie’s profitwith the bank. The filmmaker is liable only to pay back the borrowed money from the bank. The intellectual property related to the movie is put as collateral against the loan.
  • The filmmakers can apply for tax credits to the government by which some tax benefits are provided to the filmmaker while making the film. The conditions required for this tax credit are that some parts of the movie should be done in the local area. The filmmakers need to hire few employees from the local community, rent from the country’s local vendors, and payroll through local services.
  • Many grants are issued to the filmmakers by the government. The grants are mostly offered by non-profit organizations, film institutes, and film festivals. The government grants for filmmaking are offered based on a lottery system for the filmmakers. These grants are available for different activities required while filmmaking, such as development, production, post-production, and distribution grants.
  • Product placement is a famous way to raise funds wherein the filmmakers promise the brand owners to showcase certain types of brands or products in the film in exchange for money.
  • The filmmakers issue their distribution rights to different territories before the film is completed, known as pre-sales funding to the movie.

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