So, you’re raising funds-equity for your film or TV project?

Our private capital is available as guarantees and payments to support your next production.

Paymasters Group is a trusted partner in film finance

With nearly $100 Million under management, the Paymasters Group asset portfolio has been funding trade and project finance since 1930.

Funding film and tv production is one of our core competencies–with more than 20 film productions scheduled in 2016 alone.

Paymasters Group has allocated resources exclusively for the biggest names in black cinema.

Want to get started?

All funding requires 100% plus 5% for contingencies.

Paymasters Group operates within ratios of:

90/10
85/15
80/20

Cash Contribution
Tax Credits
Pre-Sales
Bonds
Fees
Other Guarantees

A reserve requirement (or liquidity ratio) is a minimum value, set by the Funding Committee, of the ratio of required reserves to some category of deposits held in escrow with eCheck depository institutions.

The only deposit categories currently subject to reserve requirements are transactions accounts, mainly trading accounts. The total amount of all net transaction accounts (total transaction accounts less amounts due from other banks and less cash items in the process of collection) held in US depository institutions, plus US currency held by the nonbank public, is called M1.

An applicant depositor can satisfy its reserve requirements by holding either escrow cash or reserve deposits must hold its reserve deposit at an approved escrow attorney.

A depository institution’s reserve requirements vary by the dollar amount of net transaction accounts held at that institution.

Effective January 23, 2014, institutions with net transactions accounts:

  • Of less than $13.3 million have no minimum reserve requirement
  • Between $13.3 million and $103.6 million must have a liquidity ratio of 3% of liabilities
  • Exceeding $103.6 million must have a liquidity ratio of 10% of liabilities

The threshold monetary amounts are recalculated annually according to a statutory formula.

 

Tax credits are an asset that may be pledged as collateral and used to meet a portion of the liquidity requirements set by the conditions of the term sheet-
  • Movie Production Incentives (MPIs): “Movie Production Incentive” is an umbrella term referring to any incentive states offer filmmakers to encourage film production in-state.
  • Tax Credits: Tax credits remove a portion of the income tax owed to the state by the production company. Production companies must often meet minimum spending requirements to be eligible for the credit. Of the 28 states that offer tax credits, 26 make them either transferable or refundable. Transferable credits allow production companies that generate tax credits greater than their tax liability to sell those credits to other taxpayers, who then use them to reduce or eliminate their own tax liability. Refundable credits are such that the state will pay the production company the balance in excess of the company’s owed state tax.
  • Cash Rebates: Cash rebates are paid to production companies directly by the state, usually as a percentage of the company’s qualified expenses.
  • Grant: Grants are distributed to production companies by three states and the District of Columbia.
  • Sales Tax Exemption & Lodging Exemption: Exemption from state sales taxes are offered to companies as an incentive. Many states offer exemption from lodging taxes to all guests staying over 30 days, but these incentives are highlighted for production companies.
  • Fee-Free Locations: An additional incentive states offer is to allow production companies to use state-owned locations at no charge.

 

On-Demand Guarantees

  • We issue on-demand guarantees to cover your obligations under credit or bond facilities in private placement agreements.

Counter Guarantees

  • Use this on-demand guarantee to secure funding from your bank or financial institution.

Pre-Sales is based on the script and cast, selling the right to distribute a film in different territories before the film is completed. Once the deal is made, the distributor will insist the producers deliver on certain elements of content and cast; if a material alteration is made, financing may collapse. In order to gain the “marquee names” essential for drawing in an international audience, distributors and sale agents will often make casting suggestions.

Pre-sales contracts with big name actors or directors will often (at the insistence of the buyer) have an “essential element” clause that (as per the example above) allows the buyer to get out of the contract if the star or director falls out of the picture and a marquee equivalent cannot be procured.

Typically, upon signing a pre-sale contract, the buyer will pay a 20% deposit to the film’s collection account (or bank), with the balance (80%) due upon the film’s delivery to the foreign sales agent (along with all the necessary deliverable requirements.)

Usually a producer pre-sells foreign territories (in whole or part) and/or North American windows/rights (i.e. theatrical, home video/DVD, pay TV, free TV, etc.) so that the producer can use the value of those contracts as collateral for the production loan that a bank (senior lender) is providing to finance the production.