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In the world of independent film financing everyone seems to be talking about "soft money". What does this term mean and why is it such a popular strategy for indie film funding?
As numerous veteran producers will tell you, cash has become scarce and over the last years raising financing for films has become even more difficult. In the past, a variety of different types of investors helped to contribute coin toward a film's negative cost production budget.
Some of the investors in film projects and independent movie studios included insurance companies with excess cash to invest, owners of television stations on a global basis willing to make advances for TV distribution rights, and film funds that sprung up to take advantage of tax advantages in several countries, just to name a few of the previously popular film funding sources.
The volatile global economy helped to create a risk-averse mood, impacting both large corporate motion picture investors as well as private investors who supported independent film projects.
Film financing has changed and many of the previously established strategies for generating film investment dollars are simply no longer available.
Other sources of film funding invest at much lower levels. In the case of some film investors, such as banks, have tightened their lending criteria so that only the largest, most-established, filmmaking teams have any hope of seeing film financing from that source.
Soft money film financing takes on a variety of different forms:With this many ideas to choose from, you have no excuse not to get started today with your own service business.
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