View Full Version : Production friendly Banks?
Joe Carney
05-11-2007, 10:39 AM
In addition to the RED, I'll be getting new computers/software, plus a few other things needed for a small production company. So I'm looking at short term financing (no more than 2 years)
Has anyone here had experience with or know banks/lending institutions that are Production company friendly? What guidelines are they looking for?
Joe C.
No, but I do have some experience in obtaining commercial loans from banks, and I expect they would treat a film production client in the same way as any other. Namely they will want to know how they will get their money back.
In their shoes, I would ask to see your business plan, track record, and your order book. If you can demonstrate a good record of generating cash flow from your business sufficient to cover the loan payments, and some evidence of future work booked, they should be interested. You will also need to pledge collateral.
There may be specialist banks in film production centres like LA who understand the business and are better able to judge risk than your average small town branch, but at the end of the day it's all about assuring them that you will generate enough cash in a reasonable time frame.
Joe Carney
05-14-2007, 10:51 AM
Sounds like I would have an easier time with investors, but I don't want to go that route if I can help it.
The equipment itself, plus other assets can be used as collateral, but garaunteeing return on a feature movie production? Hmmm.
Getting people and companies lined up who want to shoot with it might work. On the shoot I just finished, several people wanted to rent when I received mine.
I could probably recover the cost of camera and accesories within 3 months. Thats at a discount rate too. I'm not sure about how to let people use RedCine yet.
My only worries about renting are the initial lack of replacement cameras.
Thanks for the input.
Joe C.
Tom Lowe
05-14-2007, 12:59 PM
Maybe you should be asking for a list of banks that are "robber" friendly. :)
If your cash flow is dependent on returns from a feature film, I think you will have a tough time getting bank finance, even with collateral. The last thing most banks want to do is take possession of assets and sell them.
Do you have a reasonably well-off friend or relative who might act as guarantor for a loan? This could make life a lot easier.
martinnoweck
05-14-2007, 11:50 PM
Maybe you should be asking for a list of banks that are "robber" friendly. :)
lol ... reminds me, when we opened a business account at a local bank and the bank lady looked at us saying: "how did you manage to take a day off for opening this account?"
most banks have no idea about film production.
martin