Movie Financing makes it happen!

Movie Financing takes a script into production. Ready for the repeat of an earlier question? Ok, here goes. Can you name a movie that did NOT get made because there was too much money? Yeah I know, what a stupid question! How about, name all the movies that didn't get made because there wasn't enough money.

There are many ways for a script and production to get financing, but it surely isn't easy. Unless of course you have the money to produce it yourself. Guess that all depends on the budget. With the advances in equipment, some movies are being produced for only a few thousand dollars. Will they compete with a major studio? Not hardly, but that doesn't mean they shouldn't be produced. Hold that thought.

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Most Major or Mini Major Studios finance their own productions. Many times they do this through an open line of credit with a banking institution. They can also help to reduce their exposure by doing a joint production with either another production company or with a distributor. A distributor can help finance a production by pre-selling territories based on the attachments.

There are also companies who will help a producer secure financing for a production. Generally, this means a producer has a strong, complete presentation book with marketable attachments.

These companies normally have upfront fees plus usually receive a percentage if they secure the financing. They can also negotiate for screen credits and differed compensation based on the gross or net receipts of a film. Oh, and if they don't secure the financing, they keep the upfront fee.

Remember when we talked about the Movie Business? If you get that feeling in your gut that your passion is taking over for common sense, "Run Screaming from the room!" Sorry, from my past experiences, I thought you could use a reminder.

A part of the back end financing is called P&A, or Prints and Advertising. A distributor, just for the right to distribute a film, may commit to the P&A. The distributor's decision is generally based on the total production package. It should be noted, with the new technology of digital projection, the Prints part of P&A may soon undergo a major change.

Movie Financing is the final step from the production package or presentation book. It is also the first step towards producing a movie. Yes, the producer or director may have many parts of the production ready, but in truth, little to anything happens without financing.

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