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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 

  • Motion Picture Productions

  • Television Productions

  • 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 

 

  • Borrower maintains 60% of the project

  • Production Loan will be made available for a period of up to 24 months from date of first drawdown

  • 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.

Camera on Crane

FILM & TELEVISION PRODUCTIONS

About 3% Underwriting Costs

Typically 2% out-of-pocket costs to borrower

Loans for Film and TV productions.  Cannot contain excessive sex or violence.  

$1 Million +

Minimum Loan:

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?

  • Producer :  Shall be solely responsible for all production services traditionally associated with the development, pre-production, etc.

  • Arranger :  Shall arrange and facilitate the full financing of the project.

  • Lender :  A bank to be determined by the Arranger.

  • 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:

 

  1. Bankable Pre-sale: 15%: Producer shall secure a bankable pre-sale agreement with a sales agent or distributor.

  2. 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.

  3. Arranger Gap: 15%: Arranger shall provide collateral in the form of cash, a line of credit or other form of bankable guarantee.

  4. Tax Incentives: 25%: Producer shall provide a commitment of 25% representing the discounted value of Tax credits, Rebates and Grants.

  5. Arranger Commitment: 10%: Arranger shall provide collateral in the form of cash, a line of credit or other bankable guarantee.

  6. Producer Equity Commitment: 20% Producer shall provide cash or cash equivalent guaranteeing the Borrower's payment of its obligation to the Lender.

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