No shocker to yourself – film funding does not happen by itself. Film incentives offered by the federal government in Canada as well as the film tax credits themselves play can play a crucial 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 linked to Canada you may have noticed the successful financing of your own project doesn’t happen magically.! What an understatement that is.
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 provide you with 30-40% of your own total production budget we realize a man. A ‘ guy’. Well, certainly not, it’s the government of Canada, and under the proper circumstances who wouldn’t need a partner like this.
The film incentives provided by the federal and provincial government in Canada total inside the many million of dollars. These film tax credits can generally, since we stated, become a significant portion of your overall financing budget and challenge. Typically film funding of this type is carried out by independent producers rather than major studios, but we’re quite certain the large boys make use of the strategy also.
That is surprised whenever we state that the film industry in general features a risk element into it, and when you are able eliminate 30-40% of the risk right from the gate then clearly you are onto a winning strategy. Suffice to state an excellent director, cast, and story complement your strategy to win!
In film financing, as any business, it’s about money and return. The interesting thing about film tax credits is that your project – TV, film and animation doesn’t necessarily need to be a professional success – (naturally it’s nice when it is).
Can film tax credits lessen 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 round out your finance plan.
What exactly are you looking to do to maximize on the utilization of prnewswire.com in Canada. A ton of good sense helps. You should be in a position to demonstrate to the lender that you have a project that may be fully financed (debt – equity-tax credits) and just how the timing of those 3 financial components works.
Simply speaking the business side of your own project has to align towards the marketing and technical side of the plans. How is this done, ask clients. It is actually performed by surrounding yourself with a proper film tax credit advisor and accountant, who may have the knowledge to guide you through the process.
Although we position the tax credits sometimes as ‘ easy money ‘ that’s certainly not the content we convey. You should clearly demonstrate a sensible budget, how you will handle over runs, and your timelines. And that we remind readers that has to do with all facets from the industry, may it be a movie or digital animation project a la Shrek.
The Canadian government has clearly demonstrated they have committed millions for the tax credit film funding in Canada. Your task as a recipient of film tax credit financing in Canada is to demonstrate that budgets and schedules along with other committed finances will ‘ get together. ‘Generally independent projects combine with time, and proceed through a predictable ivakdq of financing, shooting, and after that post production and release.
To keep up some sort of financial conservatism around that challenging timeline the business generally demands a completion bond, which is a financial instrument that insures the project if difficulties parts of committed funds aren’t received. This type of financing bond assures your equity, debt and tax credit financier that unforeseen events will be looked after, as opposed to putting any project in danger.
To sum up, investigate film tax credit financing in Canada by talking with a seasoned, credible, and trusted Canadian business financing advisor. You’ll be show how film funding as well as the financing of the credits may be accomplished on a when filed or even with an accrual basis, assisting you further in daily cash flow on the project. So hopefully you may have seen how using our ‘ guy “(aka government film tax credits) may help you ace your project for financial success.