Film producers can benefit from UK film tax credits, but they have to wait a while to receive payments. However, a new bridging product has been launched to provide early access to the tax credit money.
Finstock is an independent investment company that offers specialist loans in niche areas in which mainstream banks do not operate. The company has previously supplied loans for early access to research and development tax credits. Film bridging loans work in a similar way; after a film producer knows how much tax credit they will receive, they can use this future payment as security for a bridging loan.
Film bridging loans are not aimed at Hollywood large budget movies. They are more suitable for films with budgets of around £1 million, which makes them particularly useful for small independent filmmakers.
Oliver Jenkinson of Finstock said:
“We are excited to enter this space and believe there is a real opportunity to support productions at the lower end of the market where capital is harder to access.”
Finstock is an example of a lender that focuses on bridging loans for specialist areas. There are other lenders that can provide bridging loans for non-standard purposes or for complex deals. A bridging finance broker can look at a loan application and match the loan requirements with a suitable specialist lender.
Many bridging loans from specialist lenders can be processed more quickly than by using large mainstream lenders. The money can often be available within two weeks or less.