Filmmakers are often frustrated when it comes to securing financing for their movies. There are several funding options available but the process of obtaining financing is challenging. However, with focus, desire and patience, it is possible to get the resources needed to make a movie.
Instructions
1. Find private investors. You will need to create a business plan that informs potential investors about your project and everything that it involves. Amongst other things, your business plan should include a synopsis of your movie, what it will cost, the target audience, the investment opportunity and the movie-making process.
2. Obtain a loan. You can seek loans from a bank or other lending agency but most lenders will need you to incorporate your production company. You are personally liable for the repayment of the loan. Your production company will also be held liable.
3. Secure a negative pickup deal. This is an arrangement in which a distributor agrees to pay for the distribution rights of your movie. You can present a document of this agreement to a lender as collateral when applying for a loan or to an investor.
4. Get a grant. Several corporations offer grants to production companies. The frequency with which these grants are offered vary. Some are offered as often as three times a year, some are offered annually and others are offered once every few years. Visit Michigan State University for a list of available grants. See the Resources section below for a link.
5. Obtain a studio development production deal. You will have to pitch your movie to studio executives. If you have been able to secure an element for your movie, such as a famous actor or a famous director, studios become interested and are more likely to fund your project. The drawback is that you will give up most of the rights associated with your movie.
6. Obtain independent distributor financing. Independent distributors can only distribute small films in smaller markets due to limited resources. Unlike major studios, independent distributors will negotiate a fair deal, offer a possibility of sharing in net profits and provide you with personal attention and support.
7. Seek talent agency financing. Talent agencies, interested in increasing their fees, may make a package deal involving some of their clients. They may finance a portion of your project and arrange financing for the rest.
8. Secure end-user financing. Television stations, cable stations, theater and similar end-users finance projects that they are interested in. They will take a percentage of the revenue from the film in exchange.
