Funding Services

As you review the following overview of services, it is important to note:

  • We are a consulting company and business service provider.
  • We are not a bank, direct lender, or investor.
  • We will never ask you for any equity, ownership, control, or oversight of your company or its projects.
  • You pay us absolutely nothing up front for the consulting services we provide.
  • You pay us only when, and to the extent, you actually get access to new financial resources. Our agreement documents all costs and terms.
  • We’ve helped dozens of filmmakers and hundreds of other business owners get access to the money they required to move their projects forward.

Establishing Business Credit: Many producers start their production company out of their own pocket using one or more personal credit cards. This turns into a problem when they want to buy a house or a car. We can help these producers establish business credit lines they can use when they want to smooth out company cash flow, develop new projects, and grow their enterprises.

  • Business lines of credit don’t report as personal debt to the consumer credit reporting agencies.
  • Business credit can be used, paid off, and used again. This isn’t usually true for standard business loans or for money that comes from equity investors.
  • We can usually arrange for established production companies to get 6-12 months of business finance interest free.
  • You won’t have to give up any equity in your company in order to get access to this funding.
  • You, and you alone, will determine when and how to use these new funding resources.
  • If business credit lines are used wisely, they will grow over time.
  • It is important to note that business lines of credit are personally guaranteed even though they don’t appear on personal credit reports. It’s also important to note that the protections offered by the Truth in Lending Act and the Credit CARD Act of 2009 do not apply to credit cards issued for business. Learn More…

Establishing Personal Credit Lines: Producers developing their first production often need money to purchase a script, get coverage, get film analytics, attach a UPM to pay for budgets, attach casting directors, and build what they take to distributors to get a minimum guarantee. It may also cover lawyers creating investment paperwork. This development/packaging is often financed from savings, friends, family, and consumer credit. When a film is financed, development/packaging funding is typically repaid.

  • We help people increase the amount of consumer revolving credit they can access, and frequently are able to negotiate a 12-24 month interest free period.
  • Revolving credit can be used, repaid, and used again which isn’t true for most loans or equity investment.
  • Credit limits will increase over time if credit resources are used responsibly.
  • You determine how and when the money is spent, when it is repaid, etc.
  • Personal lines of credit, of course, do appear on standard credit reports and are personally guaranteed.
  • Protections offered by the Truth in Lending Act and the Credit CARD Act of 2009 do apply to personal credit cards. Learn More…

SBA Loans for New & Growing Production Companies and other Industry Businesses: If you want to start your production company profitably, gain access to critical resources you need for production, be more attractive to investors going foward, and earn a reasonable salary in the process, we’d like to suggest you seriously look at using SBA loans.

Its possible for a new producer to purchase a company (a sound stage, a post production company, a distribution company, a marketing company) with an SBA loan. You don’t need perfect credit or a huge amount of money. This allows a filmmaker to acquire relationships, customers, revenues, resources, assets, a salary, etc. and can give their production company a solid base from which to build their project.

  • We can process $1M-$5M loans in 3-4 months in most cases.
  • You don’t need perfect credit.
  • You don’t need cash-in-hand for a huge down payment.
  • You pay no upfront fees to get an SBA loan.
  • In order to qualify for an SBA, the business you are buying must be able to pay you a reasonable salary, so buying a business may be a fast way for you to start earning a regular income.
  • Our SBA approved fees are paid only when escrow closes.
  • SBA loans are repaid over 10 or 25 years (the longer period is for SBA loans where 51% or more of the loan is used to purchase real estate.
  • If you already have a business, you can can use SBA loans to grow stronger and more profitable quickly through buying another company or assets (like a building, etc).
  • You can look at sites like BizBuySell.com to find a business you want to buy or you can reach out to business owners directly.  If you have questions about this process, or have a business you think you’d like to buy, email us.  We look forward to hearing from you.

Questions? 

Reach out by phone to 310 310 8614 or email mpraver@FilmFundingLA.com.

Michael Praver | Film Funding LA

Michael Praver | FilmFundingLA