Film Finance Terms

1. Presales- sale of foreign territories before commencement of production

2. Senior Debt principal interest, no equity, bank loans for example

3. Mezzanine Principal interest profits. Generally lent against cash flow estimates, tax incentives

4. Equity gets part of profits, return of investment shares with Producer’s

5. Soft Money Tax incentives, goods and services, free location etc

6. Accredited investor- Defined by the Sec currently net worth over 1m not counting house, 200k income

7. Non accredited investor one who is not accredited often called sophisticated investor in Role 501 Reg D

8. Attached. Contractually committed

9. Deferments: paid later generally out of profits

10. Loan Out. Talent and others have LLC or corporations that loan out their services to productions