FILM & TELEVISION
LOANS
Film & Television Loan Terms
While Motion Picture production is thought of as being especially risky, there are ways of hedging this risk. This financing program arranges a successfully-hedged investment that presents the possibility of high-level returns, while at the same time minimizing down-side risk.
INTEREST RATE:
RESTRICTIONS:
COLLATERAL:
EQUITY OWNERSHIP:
ADVANTAGES:
LOCATIONS AVAILABLE:
LOAN LIMITS:
ELIGIBLE PROJECTS:
MONEY DOWN:
UP-FRONT LOAN COSTS:
UP-FRONT FEES:
Worldwide
$1 Million USD to $45 Million USD
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Motion Picture Productions
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Television Productions
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A Slate of Productions
Prime + no more than 4%
Film cannot contain excessive sex or violence.
100% of the Principal Amount must be backed by bankable pre-sales, cash, Letters of Credit, and government incentives and rebates
60% - Producer or nominee
40% - Arranger
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Borrower maintains 60% of the project
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Production Loan will be made available for a period of up to 24 months from date of first drawdown
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Principal Loan amount will mature and become due in its entirety within 36-60 months from date of first advance of funds
20% Letter of Credit*
*Option to qualify for a 20% Letter of Credit, available through a Vicsar Global 3rd party entity, on a case-by-case basis, with script approval.
Approximately 3% in underwriting. Typically 2% of that is out-of-pocket for the borrower
Upfront Refundable Retainer Fee of approximately $3,500.*
*This program is offered through one of our trusted Arranging Sources
based out of New York City. This source does charge a fully refundable,
up-front Retainer Fee in order to engage the lender that offers this loan
option. This source is A+ rated with the BBB for over 20 years. Their
retainer is 100% refundable if no offer is made by the lender or if the
terms agreed to are different from the terms offered.
CLICK ON THIS PDF TO VIEW FULL FILM TERMS FROM A CLOSED FILM PRODUCTION LOAN.
Film & Television FAQ
WHAT IS THE EXPECTED ROLE OF ALL PARTIES INVOLVED?
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Producer : Shall be solely responsible for all production services traditionally associated with the development, pre-production, etc.
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Arranger : Shall arrange and facilitate the full financing of the project.
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Lender : A bank to be determined by the Arranger.
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Borrower : Arranger shall create a new single purpose vehicle (i.e., an LLC, LPC, etc.) designed exclusively for the purpose of borrowing funds from the Lender to fund the project.
HOW DOES THE COLLATERAL WORK?
A Single Purpose Vehicle is created and shall be secured and backed approximately as follows:
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Bankable Pre-sale: 15%: Producer shall secure a bankable pre-sale agreement with a sales agent or distributor.
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Bridge Pre-sale Commitment: 15%: Pending income to be generated from product placement/other, the Producer shall collaterize 15% which shall comprise a holdback of partial fees payable to Producer, Writer, Director, Service Providers and/or other budgeted items back by two major territories or a combination of smaller territories.
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Arranger Gap: 15%: Arranger shall provide collateral in the form of cash, a line of credit or other form of bankable guarantee.
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Tax Incentives: 25%: Producer shall provide a commitment of 25% representing the discounted value of Tax credits, Rebates and Grants.
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Arranger Commitment: 10%: Arranger shall provide collateral in the form of cash, a line of credit or other bankable guarantee.
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Producer Equity Commitment: 20% Producer shall provide cash or cash equivalent guaranteeing the Borrower's payment of its obligation to the Lender.