This type of financing is typically done through a bank who will lend you money with a set interest rate. This is an extremely difficult loan to get approved. Unless you have an amazing track record, usually a bank won’t lend you money for a film unless you have presales set in place. This lowers their risk and in essence allows them to offer a lower interest rate because the distributor will make sure the film is made. The advantage of debt financing is that you don’t give up any ownership of your film. After the bank has been paid off, your responsibility to them is done and none of the film’s revenue will go to them.
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