No shocker to yourself – film funding doesn’t happen itself. Film incentives provided by the government in Canada and also the film tax credits themselves play can play a crucial role in the successful completion and financing of your film, TV, and digital animation projects in Canada.
As a producer, director or owner of any film, television, or digital animation project linked to Canada you could have noticed the successful financing of the project doesn’t happen magically.! What an understatement that is certainly.
We can’t remember when any our clients made the claim that film financing is ‘ easy ‘. The fact is, though, that in case you’re trying to find a great partner who simply wants to offer you 30-40% of your own total production budget we know a man. A ‘ guy’. Well, certainly not, it’s the federal government of Canada, and beneath the proper circumstances who wouldn’t want a partner that way.
The film incentives supplied by the federal and provincial government in Canada total within the many million of dollars. These film tax credits can generally, since we stated, be a significant portion of your overall financing budget and challenge. Typically film funding with this type is carried out by independent producers instead of major studios, but we’re quite certain the large boys utilize the strategy also.
That is surprised when we claim that the film industry overall has a risk element into it, and when you can eliminate 30-40% of that risk right out of the gate then clearly you are to a winning strategy. Suffice to say a great director, cast, and story complement your tactic to win!
In film financing, just like any business, it’s about money and return on investment. The interesting thing about film tax credits that the project – TV, film and animation doesn’t necessarily have to be an industrial success – (naturally it’s nice when it is).
Can film tax credits decrease the overall chance of a project – our clients certainly believe so. Naturally those other components like marketing, additional debt and equity financing, and pre sales and distribution complete your finance plan.
So what are you looking to do in order to maximize on the consumption of prnewswire.com in Canada. A bunch of sound judgment helps. You need to be capable of demonstrate to the lender that you have a project that may be fully financed (debt – equity-tax credits) and just how the timing of these 3 financial components works.
Simply speaking the business side of your own project has to align to the marketing and technical side of your plans. How is that this done, ask clients. It is performed by surrounding on your own with a proper film tax credit advisor and accountant, who have the knowledge to help you from the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s most certainly not your message we convey. You need to clearly demonstrate a realistic budget, how you will handle over runs, along with your timelines. And that we remind readers that concerns all aspects of the industry, may it be a motion picture or digital animation project a la Shrek.
The Canadian government has clearly demonstrated that they have committed millions to the tax credit film funding in Canada. Your job as being a recipient of film tax credit financing in Canada is to demonstrate that budgets and schedules as well as other committed finances will ‘ get together. ‘Generally independent projects get together as time passes, and undergo a predictable ivakdq of financing, shooting, and after that post production and release.
To maintain some sort of financial conservatism around that challenging timeline the business generally needs a completion bond, that is a financial instrument that insures the project if difficulties areas of committed funds aren’t received. This type of financing bond assures your equity, debt and tax credit financier that unforeseen events will likely be taken care of, instead of putting any project at risk.
In conclusion, investigate film tax credit financing in Canada by talking to an experienced, credible, and trusted Canadian business financing advisor. You’ll be show how film funding as well as the financing of your own credits can be achieved on a when filed or perhaps on an accrual basis, assisting you further in day to day income on the project. So hopefully you have seen how using our ‘ guy “(aka government film tax credits) will help you ace your project for financial success.