Film Financing

Government grants:- This is where films are funded by the government. The government hope that 'creative individuals' are interested in moving into the area. The funded does not have to be repaid back the government. If the film is shot in a certain place it could help advertise the location.
Tax Schemes:-This where tax deductions are enhanced for film owners/makers and big companies that don. These people try to find the best tax deduction so that 't want to pay a lot of tax. They try to find the best tax schemes so they're tax free.
Debt Finance:- The producer of a film, sells the film in advance and use the money they have made to pay for the making of the film. The people who buy the films have to be certain that it will make a profit. Un-successful films would loose the buyers a lot of money.If a famous star is in the film or a well known producer is making the film it is a guarantee that the film would make money.
Equity Finance:- This type of finance is the less risky of the other ones. The person who buys apart in a film is guaranteed to get their money back even if the film 'flops'. Product placement in films makes a lot of money, this is because companies pay a lot of money to see their product in the film, for advertisement purposes. This happens in films such as James Bond where the product is the Aston Martin.Private equity is where film producer pitch their ideas to a private buyer such as the dragons on dragons den. These private investors will then earn a profit.