Tuesday, February 5, 2019

Source of Finance



Pros and Cons Of Different Finance Models



Source of Finance
Pros
Cons
The Studio Model
(studio lends you money)
Rely upon their expertise. They can give and share with your ideas based on their experience. Widening your knowledge.
Take Creative control. They may think its ok to try and take some of your ideas and re-create them. May feel it’s okay as they are giving you money.
UK Government Funding
(government are lending you money)
More likely to not have to pay it back. Saving the company, a lot of money in the long run. “They give out tens of millions into British film every year” therefore they may be willing to give more money than other financing sources.
These funds will impose restrictions, rules and regulations for the company that could easily compromise the project. Therefore, you may not be able to expand and do the things you wish because of the funding.
UK Tax Finances
(small business are invited to contribute to the finance)
There isn’t a maximum amount of money you can receive. There is no limit to how much money you can submit.
Not many people may want to donate, so you may not get a lot of money


Crowd Funding
(People donate –preferably online, giving you money for your movie)
With crowd funding, you dove have to pay the money back. Therefore, nothing is coming out of the movie productions pocket, so they aren’t losing money.
There may not be that much money funded. Could only be a small amount.
Bank Loan
(The producers can request money for the movie)
As long as you request a reasonable amount, they can give you the amount money you want.  
You have to give all the money back.


Here, presented is my source of finance. Listing different methods I could use for my production in order to get money. In total I researched five different methods of finance; Bank loan, UK Tax Finances, Crowd funding, UK Government Funding and The Studio model. All with which come with benefits and limitations. Presenting the advantages and disadvantages of each financial method allows me to evaluate with method would be best and which would limit me from where I wanted to go with my short film. A way of improving my work would be to add another column: presenting examples of what amount of money could be borrowed with each method. Therefore I would have more of a rough idea in how much I could borrow/loan.

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