A film loan generally refers to borrowing used to cover production costs for a film. The borrower of a film loan can be a film production company, educational institution, documentary company or other business creates films. The loan is written specifically to meet business costs associated with the purchase and leasing of camera equipment, lighting, sound, staffing and talent.

Length of a Film Loan

The length of a film loan can be short or long-term based on the needs of the business. The loan’s length is determined by the borrower and the lender and expressed in the loan agreement. The loan length can be as short as 12 months or as long as several years. Film is an ongoing supply need of a film company so the loan funds purchases needed at the time a film company is shooting a film production. The most typical film loan will be around 12 months and paid back upon completion of the film project.

Film Loan Lenders

A lender for a film loan includes a bank, private lender or even a government agency through the U.S. Small Business Administration. A business looking to take out a film loan works with a lender experienced in providing these types of loans. The proceeds of a film loan are specifically designed for film and film-related equipment for the business.

Interest Rates for a Film Loan

The interest rates for a film loan are most probably based on short-term interest rates, which fluctuate from time to time. This reflects the mostly short-term nature of these loans and the fact that a borrower is more likely to pay back the loan upon completion of the film project.

Some important items to know to finance your are:

  1. How much money do you really need?
  2. Do you know your exact FICO scores?
  3. How do you plan to repay the loan?
  4. Who is going to borrow the money? You personally or another legal entity?
  5. What assets can you pledge to secure your loan?

Make sure you know you are pre-qualified before you apply. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.