PaydayNow: Nine Different Ways To Get Funding Your Film

There are a variety of strategies that you may use to get film financing, including the following:

  1. Grants

There are many grants and fellowship opportunities available for filmmakers, ranging from government funds to licenses granted by nonprofit organizations, film festivals, and film institutions, among other sources. While government film funding is often awarded via a lottery system or just needs a few basic requirements, most other film grants are awarded. 

Potential grantees must go through an application procedure before being awarded the grant money. Many awards have strict eligibility requirements; for example, there are funds for first-time filmmakers, women, new-media storytellers, and documentary filmmakers, among other recipients. The Film Development Fund provides funding for every step of the filmmaking process, including development grants, production grants, post-production grants, and distribution and exhibition funding.

  1. Tax incentives

In the United States and Canada, various tax breaks, deductions, and rebates are available for filming portions of a film or housing a film’s crew in specific locations, often to promote tourism in a particular area or take advantage of a particular location during its off-season. These tax breaks are available for a wide range of films, including documentaries and high-budget studio productions

Tax incentives are referred to as “soft money” in the film finance industry since the filmmakers are not required to repay the stimuli received. Tax benefits are not accessible until after a film production has been completed and the accounting team for the show has filed tax returns for the exhibition.

  1. Pre-sales

Pre-sales are a method of receiving cash before a film is finished. They are accomplished by selling the distribution rights to multiple areas. These funders might demand sure performers are added to the cast, genres, or issues. If the filmmakers cannot comply with these demands, pre-sales funds may be jeopardized.

  1. Negative pickup contract

A producer sells a film idea to a studio for a specified sum, but the money is only made available until the entire film has been finished. As a result, the filmmakers will need to get cash as usual, and they will likely have an easier time doing so since they will be able to ask banks to lend against the value of the transaction. These, however, might be problematic since, if the picture’s budget ends up exceeding the number supplied by the studio, the film crew will have to come up with a strategy to make up the difference in funding.

  1. Gap Financing

Gap financing is when filmmakers take out a loan from a gap firm in exchange for the film’s unsold rights, which may include box-office receipts, streaming permits, and DVD sales, among other things. Gap financing entails significant risks for both parties since it is hard to forecast how a film will do in North American or international markets. The projected value of the unsold rights may be wrong, resulting in a poor return on investment for both parties.

Read More: What is easiest credit card to get?

  1. Private investors

Whether a wealthy individual who wants to diversify their investment portfolio or a wealthy individual who just enjoys movies, private investors may help a film be financed. Because investing in film is regarded as a high-risk investment, private investors account for a relatively tiny share of total film financing.

  1. Fiscal sponsorship 

It is a contract under which a film crew may join a nonprofit organization to gain tax-exempt status for their movie; this is known as fiscal sponsorship. Because of its tax-exempt status, a film production may be eligible for a more significant number of grants and tax-deductible contributions than otherwise.

  1. Crowdfunding

To crowdfund a film, the production team will put its pitch, trailer, and cast list on the internet and ask members of the general public to make individual contributions to assist the team in reaching their goal of raising $100,000. A handful of low-budget films have grown a part of all of their finance using crowdsourcing efforts in recent years.

  1. Placement of Product

When a filmmaker agrees to use particular items or brands in their film to receive either free products (for example, high-end vehicles for chase sequences) or direct film finance, this is known as product placement in film financing.