Bruce Nahin
Film Finance Terms
Presales- sale of foreign territories before commencement of production
Senior Debt principal interest, no equity, bank loans for example
Mezzanine Principal interest profits. Generally lent against cash flow estimates, tax incentives
Equity gets part of profits, return of investment shares with Producer’s
Soft Money Tax incentives, goods and services, free location etc
Accredited investor- Defined by the Sec currently net worth over 1m not counting house, 200k income
Non accredited investor one who is not accredited often called sophisticated investor in Role 501 Reg D
Attached. Contractually committed
Deferments: paid later generally out of profits
Loan Out. Talent and others have LLC or corporations that loan out their services to productions