You are on page 1of 4

Movie Funding Essentials : A Film Financing Company Can Finance Your

Tax Incentive And Other Capital Needs For Media ro!ects

" The Film Finance #usiness is a cruel and shallo$ money trench% a long plastic
hall$ay $here thieves and pimps run &ree% and good men die li'e dogs( There)s also
a negative side(*
O+E,+IE- . In&ormation on movie &unding and the tax incentive &inance strategy
that is o&&ered #y a &ilm &inancing company( Tax credits and other &orms o& &ilm / tv /
animation &inance provide valua#le capital &or your pro!ects
Movie &unding in Canada (and that includes film, television and digital productions) may
not be exciting as in the U.S., so with apologies to famous journalist unter !hompson "
!he #ilm #inance business is a cruel and shallow money trench, a long plastic hallway
where thieves and pimps run free...............$ who was actually referring to the music
business its still important to understand what a film financing company can deliver on
for your projects if you%re a producer&owner. !hat might mean &ilm tax incentive credits
that are widely used, or other forms of finance uni'ue to the entertainment industry. (et%s
dig in.
)hile almost everyone thin*s of % +((,)++- % when it comes to productions the
reality is that it has lost a lot of its business to other states in the U.S., Canada, and even
.urope. owever, our focus here is on Canadian productions(
!he &ilm tax credit system in Canada is largely responsible for the success of film
financing here. )hile an ongoing debate rages on around the benefit of govt film tax
credits (both the federal govt and provinces offer credits) hundreds of millions of dollars
continue to be available to project owners.
)hen you loo* at the total financing pac*age of a project the film tax credit portion is
often called ) so&t money 0( /n Canada it%s 'uite often very achievable to finance 012314
of a project via the tax credit system. 5ost people recogni6e that there%s really what top
exerts have called a % global battle % for countries vying for your production via their tax
#rom the owner&producers point of view film tax credits eliminate a large amt of the ris*
and at the same time maximi6e the return on investment for any e'uity holders in the
project. +ne of the most popular aspects these programs specifically is the )
,O12CTION 3E,+ICE3 TA4 C,E1IT ) 53TC6% which finances a large
component of your labor costs. 7nd again, remember that that includes film, !8, and
interactive digital productions.
#inancing for your 3TC is available because the program is structured as a refundable
credit 2 allowing you to cash flow the claim. Similar to financing S9:.- research tax
credits the financing is typically structured as a bridge loan, with no payments being
made until the govt issues the refund che'. !hat of course allows you to recover monies
spent, satisfy other obligations within the project, or start on your next project;
!he 01igital ) aspect of special effects and animation has become so popular in the
industry that it has its own lucrative tax incentive 2 its the ) 1I7ITA8 INTE,ACTI+E )
credit and is specifically formulated to cover off the spending around aspects of special
effects productions
/n the case of the <S!C or digital credits it%s important to have a good film tax credit
accountant prepare and maximi6e your claim.
#inancing from traditional institutions such as our Canadian chartered ban*s is generally
not available for independent producers. !he si6e of these projects (generally smaller)
and the % ris* =more often than not preclude traditional financing.
/f you%re loo*ing for film tax incentive financing from a film financing company for tax
credits or the other forms of film finance (presales, distribution, gap, etc) see* out and
spea* to a trusted% credi#le and experienced Canadian #usiness Financing Advisor
$ith a trac' record o& success who can assist you with your capital needs.
Stan <ro*op 2 9 ar' Avenue Financial :
:usiness &inancing &or Canadian Firms % speciali;ing in $or'ing capital% cash &lo$%
asset #ased &inancing % E<uipment 8easing % &ranchise &inance and Cdn( Tax Credit
Finance ( Founded =>>? @ Completed in excess o& A> Million B o& &inancing &or
Canadian corporations ( In&o /Contact :
Eave A Fuestion /Comment On Our :log Or Canadian :usiness Financing
Alternatives G
9 ar' Avenue Financial
3outh 3heridan Executive Centre
=AH> 3outh 3heridan -ay
3uite I>H
Oa'ville% Ontario
1irect 8ine D ?HJ IHA M9JA
O&&ice D A>M L=A =JMI
Email D spro'opN9par'avenue&inancial(com
) Canadian :usiness Financing -ith The Intelligent 2se O& Experience )
3tan ro'op