Guide to Film Production Financing

Once you have come up with an idea for a great film and received the proper education and training needs, it is time to move onto securing film funding. Depending on the size of the project, this may be as simple as getting someone interested in your project. However, film production financing is usually the most challenging aspect of creating a film.

The ease of securing film production finances depends greatly on the quality, originality and marketability of your idea. It also depends on current market trends, artistic merit of the film and the quality of the cast and crew involved.

Before seeking out film financing you must:

1. Create a professional business plan detailing the project from beginning to completion.
2. Establish a budget that is realistic and as detailed as possible.
3. Begin the project as much as you can to prove your dedication to the project.

Action Steps
The best contacts and resources to help you get it done

Government grants can help with film finance

Grants are an excellent way to secure funding since they never have to be paid back. They are usually in small amounts, however. Government grants are usually awarded to film makers with important subject matters and often documentaries.

I recommend: Search for independent film grants at International Documentary Association or Independent Feature Project.  

Find film financing companies

Finding companies solely dedicated to start up financing film production is not easy. Take the time to research film financiers.

I recommend: Emerald Elephant Entertainment provides film financing in Arizona. IndieVest is a film studio and financier that provides independent film financing. Peacefulfish is one of a few film financing companies that works with film financiers and filmmakers, and also sponsors workshops on film production financing.

Secure pre-sale film finance deals

Pre-sales deals are secured through a distributor who is willing to commit to buying your film and allowing you a percentage of the sales revenue as the film maker. This is the way that most big-budget movie producers obtain financing, but it is hard to secure pre-sales when you are first starting. You can get a pre-production loan from a bank with a promise of a pre-sale from a distributor.

I recommend: Try MarVista Entertainment, Allied Entertainment Group, or Artisan Entertainment.

Get production loans

Production loans are not terribly hard to secure if you have good credit and assets like any other loan. You must have personal hard assets, which can make filming a big personal risk. Many times loans of this kind have high interest rates as well.

I recommend: Apply for a loan at eLoan, Bank of America or LendingTree.

Try to get negative pick-up deals

With a negative pick-up deal, you license the film to a distributor for a previously agreed upon price after completion. You can usually take proof of commitment to a bank to get film finance before production then. Be sure the delivery requirements are realistic and in your favor.

I recommend: Try to get a deal with Fox Searchlight Pictures, Kino International or Magnepix.

Tips & Tactics
Helpful advice for making the most of this Guide

• Try to get big names associated with the project whether it is a director, producer or actor willing to work low-budget.
• Have a plan to save money in places such as props, costumes, special effects and scenery.
• Your film has a better chance if the subject matter is of social importance.

The official source of Film Production Financing is
the Film Production Financing page at Business.com