Film Financing: What It Takes to Make a Film

The Importance of Film


Films are important to every culture. They reflect elements of real life and also discuss certain topics that many might be afraid to speak of. 


At the core of it, film is entertainment. Many view the medium as a form of escapism. Film as a medium is of great importance because it allows filmmakers to convey their visions and their truths. It also encourages discourse through its portrayal of problems that society experiences.


The effort of every member of the team is important for the film to reach completion. But before anyone can even begin working, a budget has to be set, and money needs to be on-hand first. 


Film Finance


As its name suggests, the film industry produces films and shorts. This is the industry’s purpose. Similar to other industries, the workings of film goes beyond production timelines. One of the end goals in making films is to profit off it. This cannot be done if the film does not even reach the screens.


For this to happen, money and plenty of preparation have to be involved first. People working in the industry need to be knowledgeable about the logistics and finance that goes into every project they work on.


This is similar to real life. They need to be aware of how to fund their endeavors, like home and car ownership with mortgages or title loans in Utah. There are several avenues in which film teams can get money for their projects.


How to Finance Films in the Modern Age


Production teams can utilize different methods in order to get financed. While the size of the team and its popularity may affect these ways, their location does not. Crews in Utah have about the same opportunities as the ones in Los Angeles.


One way of getting funding is through crowdfunding. This method is commonly utilized by independent films that do not have large production studios to back them up. 

Often, the films that get successful funding from the public are ones whose premise already has a huge following. Other times, the people in the film are the ones who catch the attention of the crowd.

Another means of funding a film is through gap loans. This popular financing option is typically used to bridge any remaining funding needs left behind by prior financing involved. Pre-sales are also considered by bigger production teams. 

Money is earned through pre-sales because the team has existing agreements with the distributors before production has even started. Pre-sales contracts are made after the distributor has ensured the quality of various factors such as the marketing strategy, the strength of the script, and the included talent involved. 

People watching a film

Private investors and product partnerships are also viable solutions to money problems. When working with products, it is common for companies to utilize a team’s film for product placement. This is often subtle and will not even affect the narrative of the film.

Private investors, on the other hand, are individuals who wish to widen the scope of their portfolios. This is the most difficult funding to obtain because it is rare that investors will commit their money on films when there are other means of investing.

The money collected to fund the project has a lot of power over what happens in the succeeding months. Production will be affected, which will then either positively or negatively impact the finished product.

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