The Best Kinds of Financing for Independent Film Studios
So you have a great idea for an film and a story that the world needs to hear. The only problem with your venture is a lack of capital to support its production. Independent films across the globe are often squelched in their early time of conception simply because of difficulty with securing funding. The problem does not have to kill a dream or passion; independent film financing comes in a variety of options.
It is unfortunate the today’s world presents so many challenges to the enthusiastic indie producer. With the wonder of digital technology made accessible to common people, it is increasingly more difficulty to stir energy and excitement for personal projects. Not only that, more individuals have come on the scene and the competition for attention has created a nightmare for young enthusiasts. Even if your quality may be better than a first generation production or your storyline explores more socially-relevant topics, banks and lender are unwilling to take the risk on an investment that may not prove profitable. There are too many players and too many risks.
Apart from securing an investor willing to take the brunt of the financial obligations in return for percentage-based returns, you could look to finance your film through the following options.
Loans
Despite the need being for independent film financing, a traditional loan is still money that has to be paid back with interest. Depending on your credit worthiness, any potential collateral you may have offered and the amount of money requested, you could be making your financial obligations greater than necessary or intended. Even if these loans come with high interest rates, the good news is that your film’s budget has already been covered and you can get to work.
Subsidies or Grants
Unlike a loan, getting a grant or subsidy is financial assistance that doesn’t have to be repaid. These are often issued in accordance with the location of the production. Film subsidies are production incentives where a state will reimburse or refund a percentage of the money spent on production in the state. Given the way the payout may work, you might find you receive your payment through tax credits and deduction even before the film is produced.
Crowdfunding
If you are still short on funds, consider bringing your project to the people to round out your independent film financing. With crowdfunding options, you can attract financial support from eager colleagues, peers or professional who share your passions and interest.
