CanadianFilmMaker - Interim Financing: What, Where and How

Interim Financing: What, Where and How

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Banks and some private funds are both possible sources of interim funding. Rogers Telefund and the Prairie Bridge Fund, for example, will advance loans at an interest rate below market rates, and are therefore the cheapest sources of interim financing available.

However, both of these private sources limit the amount of money they will lend, and what they will lend against. For example, Rogers Telefund will not lend against tax credits, which means it may not be a viable option for some producers.

The three main banks offering interim financing in this country are Royal Bank of Canada, HSBC Bank Canada, and National Bank of Canada. All three are very experienced, and their entertainment account executives can provide you with a lot of good information, along with the money.

The deal

It’s a good idea to discuss your project with two different banks so you can compare costs and terms, and choose the better alternative. Note that the loan’s legal terms will be negotiated by the bank’s legal counsel and your own. (When arranging interim financing, you must have legal representation.)

Tips:

The producer has the responsibility to make sure the lender and third parties get what they need in terms of documentation (e.g., certificates of insurance) – some producers assume the bank will look after everything.

Getting started

To get discussions started, and create the most favourable impression possible, come armed with the following: