Cult hits like Fargo and The Big Lebowski are known and loved by the masses. What many people don’t know, however, is that the first film produced by The Coen Brothers barely made it to the silver screen. The movie in question is Blood Simple, which just managed to raise the $750,000 necessary for its realization.
When it reached the Box Office, it grossed no less than five times that amount. This story is far more common than you might think and is telling of the biggest challenge faced by independent filmmakers. Raising enough funds is key to bringing your story to life. The more money you have, the more you can put towards production value.
So, what can you do to secure the funding you need for your indie movie? Listed below are some tried-and-tested options to consider.
Equity
This financing option involves exchanging production funds for ownership interest in the film and a cut of the profits. These deals are structured in a variety of ways depending on how the investor wants to obtain a return. With equity funding, it’s important to be as transparent as possible regarding the production.
Investing in film is inherently risky, so investors need assurance or you could be held liable for misrepresentation. This is why it’s recommended to consult an attorney or equity structure when participating in this kind of deal.
Installment Loans
If you prefer the flexibility of working with tangible cash and would rather avoid the responsibility that comes with an equity investment, installment loans are a considerable option. Interest rates can vary depending on the lender and nature of the loan but can range from 4.99 to 35.99 percent.
Another benefit here is you can apply for them online, often with no collateral requirements and fast approval. Providers like LoanPigUSA.com offer convenient online installment loans that can be paid off over a fixed period.
Pre-Sales
This is a type of agreement whereby a contract is drawn up with a distributor prior to production. The nature of the contract is determined by the perceived success of the project. Influencing factors include the cast, script and marketing strategy.
From here, you can either receive a bank loan or direct payment from the distributor. This is another method where the complexity warrants consulting with a counsel before making any deals.
Crowdfunding
If you’re seeking a more modern approach, crowdfunding is worth looking into. It’s worth noting that a full campaign can be expensive and success is usually the result of strong support from a cult following.
Tax Credits
Tax credits are better suited for filling the gaps between funds raised and the total production cost. Some states allow subsidization on filmmaking budgets through tax benefits. This kind of deal is typically done in exchange for local support, be it hiring staff in the area or renting from nearby vendors.
This is by no means a comprehensive list of options. So, don’t hesitate to get creative and look into other financing methods, as there is likely one that’s perfect for your film.