Movie Funding Essentials : A Film Financing Company Can Finance Your Tax Incentive And Other Capital Needs For Media Projects

“ The Film Finance business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There's also a negative side.”

OVERVIEW – Information on movie funding and the tax incentive finance strategy that is offered by a film financing company. Tax credits and other forms of film / tv / animation finance provide valuable capital for your projects

Movie funding 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 Hunter Thompson " The Film Finance 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. That might mean film tax incentive credits that are widely used, or other forms of finance unique to the entertainment industry. Let's dig in.

While almost everyone thinks of ' HOLLYWOOD ' 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 Europe. However, our focus here is on Canadian productions.

The film tax credit system in Canada is largely responsible for the success of film financing here. While 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.

When you look at the total financing package of a project the film tax credit portion is often called ' soft money ‘. In Canada it's quite often very achievable to finance 30-50% of a project via the tax credit system. Most people recognize that there's really what top exerts have called a ' global battle ' for countries vying for your production via their tax credits.

From the owner/producers point of view film tax credits eliminate a large amt of the risk and at the same time maximize the return on investment for any equity holders in the project. One of the most popular aspects these programs specifically is the ' PRODUCTION SERVICES TAX CREDIT ' (PSTC), which finances a large component of your labor costs. And again, remember that that includes film, TV, and interactive digital productions.

Financing for your PSTC is available because the program is structured as a refundable credit - allowing you to cash flow the claim. Similar to financing SR&ED research tax credits the financing is typically structured as a bridge loan, with no payments being made until the govt issues the refund cheq. That of course allows you to recover monies spent, satisfy other obligations within the project, or start on your next project!

The ‘Digital ' aspect of special effects and animation has become so popular in the industry that it has its own lucrative tax incentive - its the ' DIGITAL INTERACTIVE ' credit and is specifically formulated to cover off the spending around aspects of special effects productions

In the case of the PSTC or digital credits it's important to have a good film tax credit accountant prepare and maximize your claim.

Financing from traditional institutions such as our Canadian chartered banks is generally not available for independent producers. The size of these projects (generally smaller) and the ' risk ‘more often than not preclude traditional financing.

If you're looking for film tax incentive financing from a film financing company for tax credits or the other forms of film finance (presales, distribution, gap, etc) seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your capital needs.










Stan Prokop - 7 Park Avenue Financial :

http://www.7parkavenuefinancial.com

Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

7 PARK AVENUE FINANCIAL = CANADIAN FILM TAX CREDIT FINANCING EXPERTISE




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' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

It’s 11 O’clock – Do You Know Where Your Canadian Financing & Funding For Production Tax Credits Is? Finance Your Film Tax Incentive Now

Let Film Tax Credit Financing In Canada Get Your Project To The Top Of The Mountain

Information on financing and film funding via monetization of your production tax credit . Finance your film and digital media tax incentive for project cash flow and working capital .



When we speak to producers/owners of film, TV and digital animation projects it always seems to be late. Late in respect to getting the financing they need for their projects. That's why it's never been as important a time as now to consider film funding and financing for TV and digital animation projects via the production tax incentive offered by Canadian provincial and federal governments.

The reality is that the Canadian tax credits available to you are currently some of the best administered and most generous in the world.

Using these credits is of course a solid way to help ' cash flow' your film. And with the right assistance, team and advisors you can creatively even pre-fund the tax incentive prior to final filing; of course eliminating then waiting for your cheque from the government.

And by they way, it’s certainly not a complicated process. We liken it with clients to a simply business financing application, one of course that is supplemented with key info on your production such as a budget that clearly that will be the essence of the tax credit application.

Naturally we spoke of a key advantage of the tax credit which was the ever elusive cash flow required to complete your project. But don’t forget also that its a well worn and proven saying in any business financing that ' debt is cheaper than equity ' so we can safely say that by maximizing your tax credit component you naturally enhance and retain equity , i.e. the ownership in your project . Bottom line, why give up equity when you don’t have to with a solid alternative such as tax credit film funding. And don’t forget that applies to TV and the growing digital media projects also.

Canada seems to continue to view in a very positive manner the impact the genres of film, TV and digital media have on the overall Canadian economy. Issues such as employment and future tax revenues seem to drive the overall thinking.

Canadian tax credit financing is not that fragmented as in the U.S. and other parts of the world. Each of the provinces work closely with the federal government which promotes a solid co operative effort.

Many U.S. and other producers in both digital media and other genres are opening Canadian offices. Gaming and video has become the fastest growing segment of the industry. It used to be mainly because of the Canadian $ exchange rate, that clearly is not longer the reason. Canada, aka ' Hollywood North' has clearly evolved into a major center for film, special effects, and gaming. One studio estimated that it costs 1/5 of the expense to create a VFX Green Room in Vancouver as opposed to L.A...

And don’t forget our subject matter today, which is thanks to a guy named DAVE. Dave is the acronym for the Digital Animation Visual Effects tax credit which provides, as an example a 50% tax incentive credit on labor

Because major Canadian centers such as Toronto, Vancouver and Montreal have great talent pools for the industry that allows the labor portion of the tax credit to be maximized - and that’s a good thing, translating into extra cash and working capital for your projects.

In Ontario for example tax credits are actually an ' online ' process for application, with major effort having gone into streamlining the process and approval times.

To finalize and finance your tax credit you need two critical team members, a tax credit expert who can maximize your claim, as well as an experienced Canadian business financing advisor who can cash flow and finance your tax credit for the obvious benefits we have mentioned.

So, it’s getting late. Do you know where your tax credit and financing is? Speak to a Canadian Expert for film and digital animation financing of your next production.



ABOUT THE AUTHOR - STAN PROKOP

7 PARK AVENUE FINANCIAL

CANADIAN BUSINESS FINANCING

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