Equity finance in the context of feature film production refers to a form of funding where investors contribute capital to a film project in exchange for a share of ownership and a portion of the profits. This approach allows filmmakers to secure funds without having to rely solely on loans or studio financing. It’s one of several ways a film can be funded, alongside debt financing, pre-sales, tax incentives, and grants.

A Secured Loan for a feature film is a type of financing where a lender provides funds to the production in exchange for collateral—a tangible asset or financial guarantee that secures the loan. If the film fails to generate enough revenue to repay the loan, the lender has the legal right to seize the collateral to recover its money. This type of loan is commonly used in the film industry to fund production when filmmakers lack sufficient cash flow upfront.

An Unsecured Loan refers to a type of funding provided to filmmakers without requiring any collateral, such as property, equipment, or pre-sold distribution rights. Unlike secured loans, which are backed by specific assets, unsecured loans are riskier for lenders because they rely solely on the borrower’s ability to repay from the film’s future revenue streams.

Film tax credit financing is a process where filmmakers secure upfront capital by borrowing against the anticipated value of tax credits they will receive after the completion of the film. This financing method helps filmmakers cover a portion of their budget before the tax credit is officially paid out by the government.

The UK offers a Film Tax Relief (FTR) scheme to incentivise film production, especially within the UK. This relief is available to films that meet certain eligibility criteria, primarily focused on promoting British culture and encouraging film production in the UK. A detailed overview of the current rules and rates as of 2024 can be found on the FTR-UK webpage on this site.

Pre-sales financing is a popular method used in the film industry to secure funding for a feature film by selling distribution rights to territories, platforms, or mediums before the film is completed (or sometimes even before production starts). The money raised from these pre-sales can be used as a financial foundation to help cover the film’s budget, reducing the need for other, more expensive forms of financing.

Gap Finance refers to a specialised type of funding used to cover the shortfall between the film’s production budget and the amount already secured through pre-sales, tax credits, or other financing sources. Essentially, it’s a loan provided to filmmakers to bridge the “gap” between the capital they have already raised and the total amount required to complete the film.

Post-production finance refers to a type of funding that filmmakers secure after the principal photography (the main shooting of the film) has been completed. This financing is specifically used to cover post-production expenses, which include activities like editing, visual effects, sound design, colour correction, music scoring, and marketing. Post-production financing helps filmmakers complete their film to the highest quality and get it ready for distribution.

Completion Funding is a type of financial assistance provided to a project—typically in the film, TV, or video game industry—that has already begun production but needs additional funds to complete it. This type of funding is crucial when a project is partially done but faces unexpected costs or budget shortfalls, preventing it from reaching its final stages, such as post-production, editing, or distribution.

Lease financing in the context of feature film financing is a method used to fund the production of films through leasing arrangements. It primarily revolves around the financing of key assets, such as production equipment, sets, and other physical components essential to the filmmaking process. However, we are looking at taking the elements of the Delivery DCP, Audio Files etc. as tangible items for Lease Financing.

Over the last three years we have looked at various models of financing.

The Model we like to achieve is a fair distribution of reward to the Producer and Financier. ITAF looks after our financing process and seeks to ensure that ALL Parties, including Third Party Investors, are secure in the process of film financing and fully understand the implications and responsibilities when completing our documentation.

Financing Areas we consider:

Each project has different requirements and can have different attributes when putting together the final finance plan.

Please contact us for further information.