You have a brilliant idea for a film, but you don’t have the funds to bring your vision to life. Most filmgoers don’t know what goes on behind the scenes and all the work it takes to even get the film off the ground.
For independent filmmakers, it’s even more challenging if you don’t have intellectual property with a following or wealthy friends/family to help. Raising money is key, and there are only a few ways to do that:
A pre-sale agreement is a contract made with distributors before the film is produced. These agreements are based on the projected strength of the film. Distributors assess the film’s talent, its script and the marketing strategy.
Once a filmmaker has entered into a pre-sales agreement, a loan can be taken out and the agreement can be used as collateral, or a payment can be received at a discount from the distributors.
The filmmaker must repay the loan before profiting and personally guarantee the loan in the event the film is not completed.
This type of financing can be complex and challenging to navigate without the help of a lawyer.