What and How Viable is Gap Film Finance?

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Today there is a real variety of options for people searching to secure funding for a filming projectand as with most artistic projects, generally speaking the bigger the names the more possibilities there are. It is a fact that definitely rings true in the blockbuster film sphere, and particularly in relation to Gap film finance capital raising.

Gap financing has been a solid option for raising money for production projects in the US and elsewhere for some years now. It’s a method that has proved particularly effective for large scale productions, where the projected value of post-release sales can be easily quantified and represent sufficient amounts to complete the production tasks at hand.

The idea here is that the projected markets of an unreleased film are sold off pre-sale, meaning investors get chunks of the market in the long run. In the US it’s quite uncommon for domestic regions to figure in the economic calculations of potential investors, and international markets are favoured for their tendency to present much more predictable movie-going trends.

Potential investors will assess a number of variables and statistical evidence in conjunction with a comprehensive analysis of each country’s viewing traits, such as how well a particular genre fits, or what’s proved popular in recent years. The value of these potential markets is then set against a capital loan, which forms the backbone of a film finance packet for producers and directors.
However, gap loans like this have proved to be an up and down market for companies in the last few decades, and a number of big players have collapsed under the strain of propped up bank loans made against poorly assessed market features or unpredictable changes, such as sudden alterations in genre Zeitgeist or unexpected economic factors.

eMate specialises in creating connections between the international screen industry and Melbourne local talents. It will be easier for you to obtain movie funding for your project, when you are working with the right people. We will put you in contact with talented directors, writers and producers who have already proven their flair for success by winning important awards. And, since there is a 40% local rebate for film production services, your accountant will love us, too. Get the movie funding you deserve by working with the best Melbourne artists and producers.

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