No shocker to yourself – film funding does not happen by itself. Film incentives offered by the federal government in Canada and also the film tax credits themselves play can play a vital role in the successful completion and financing of the film, TV, and digital animation projects in Canada.
Being a producer, director or owner of any film, television, or digital animation project related to Canada you might have noticed the successful financing of your project doesn’t happen magically.! What an understatement that is.
We can’t remember when any one of our clients made the claim that film financing is ‘ easy ‘. The fact is, though, that if you’re searching for a great partner who simply wants to present you with 30-40% of the total production budget we understand a guy. A ‘ guy’. Well, certainly not, it’s the government of Canada, and under the proper circumstances who wouldn’t desire a partner like that.
The film incentives supplied by the government and provincial government in Canada total in the many million of dollars. These film tax credits can generally, since we stated, be considered a significant part of your current financing budget and challenge. Typically film funding of the type is carried out by independent producers instead of major studios, but we’re quite certain the big boys use the strategy also.
That is surprised whenever we state that the film industry overall features a risk element with it, and when you are able eliminate 30-40% of the risk right out from the gate then clearly you are to a winning strategy. Suffice to state a good director, cast, and story complement your strategy to win!
In film financing, as any business, it’s about money and return on your investment. The interesting thing about film tax credits is that your project – TV, film and animation doesn’t necessarily must be a professional success – (naturally it’s nice after it is).
Can film tax credits lessen the overall chance of a task – our clients certainly believe so. Naturally those other components including marketing, additional debt and equity financing, and pre sales and distribution complete your finance plan.
So what do you need to do in order to maximize on the consumption of prnewswire in Canada. A lot of good sense helps. You have to be capable of demonstrate towards the lender that you have a task that can be fully financed (debt – equity-tax credits) and how the timing of such 3 financial components works.
Simply speaking the business side of your project must align towards the marketing and technical side of the plans. How is this done, ask clients. It really is carried out by surrounding yourself having a proper film tax credit advisor and accountant, who have the experience to guide you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not your message we convey. You should clearly demonstrate a realistic budget, how you will handle over runs, and your timelines. And we remind readers that concerns all aspects in the industry, may it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they may have committed millions to the tax credit film funding in Canada. Your work as a recipient of film tax credit financing in Canada is always to demonstrate that budgets and schedules and other committed finances will ‘ come together. ‘Generally independent projects come together with time, and go through a predictable ivakdq of financing, shooting, then post production and release.
To keep some kind of financial conservatism around that challenging timeline the market generally needs a completion bond, which is actually a financial instrument that insures the project if difficulties regions of committed funds aren’t received. This kind of financing bond assures your equity, debt and tax credit financier that unforeseen events will be looked after, rather than putting your project in danger.
In conclusion, investigate film tax credit financing in Canada by talking to a skilled, credible, and trusted Canadian business financing advisor. You’ll be show how film funding as well as the financing of your credits can be accomplished on a when filed or even on an accrual basis, assisting you further in daily cash flow on your project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.