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LESSON
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Completion Guarantor Letter of Intent
One of the most crucial parts of your project will be the financing instruments. You must have a firm grasp of what each document entails and the ramifications of each and how it will be met upon completion of the project. Failure to understand these full
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Lender's Letter of Intent
Make sure the Letter of Intent is carefully drawn out and very detailed. If these are poorly written they will not carry any weight and make you look unprofessional.
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Letter of Credit
The Letter of Credit is as good as cash if you meet and carry out all the terms. Make sure the information on the LoC is accurate and agreed.
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Not Worth the Paper they are Written on
If your financial documents are not written with enough detail and obligation by your investors they are virtually worthless. Any investor needs to sign the appropriate legal documents.
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Distribution Guarantees
When working out the final details of investors and distributors you need to knwo in advance what terms your investors need to make the deal work. Sometimes it is best to get your investor and potential distributors together. Once together these two part
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Foreign Pre-Buy Guarantees
Once the revnue flow begins upon release fo your project, the sales projections should match closely to the original Ask/take Sales Projections. The investors are paid off based on the terms and conditins set forth in the finacial documents agreed upon.
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What Works and What Does Not
You need to take into consideration what will help your film in distribution and what will hurt it. Each international market has different factors that will impact how well your film will do. You will have to weigh those and plan accordingly if you are a
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Social Trends and Success
You need to pay attention to social trends. These can make your film successful if you factor them in correctly to your project or just as quickly thety can make your project bomb. The population is ever changing and so are the social trends.
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Documentaries
You need to apply the same fundamentals you would to a regular feature film as you would with a documentary. You have to research your market and the audience. A well planned package will is a powerful tool to aid you in making your doc.
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Documentary Grants and Funding
There is a lot of support to make doc's and the audience for them is growing. If you prepare your project package you can appraoch many agencies for grants to create your Doc.
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Tax Incentives
Shooting a film fuels many economies. To help persuade companies to shoot in their countries many offer huge Tax Incentives and rebates. Canada and Eastern Europe are two areas well known for these practices.
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Top Sheet Budget Summary
The first thing any excutive will look when deciding to finace a film is the top sheet budget. This is the principle breakdown fo the budget summary and is very important.
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Why This is Important
You have to understand the financial side to the film industry if you ever hope to have a project made. You must also understand how it works to best protect your interests.
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