The TV & Film industry has been dramatically impacted over the last 16 months. Even as other sectors have started to see the light at the end of the tunnel, theatres and cinemas have remained closed, having a knock-on effect on production companies. With a lack of new releases, studios having to adhere to new rules and regulations, and budgets overrunning across the board, positive cash flow is proving difficult for many TV & film production companies
Recent events have obliterated the forecast predictions for box office hits. Even global franchises such as James Bond haven’t been able to escape the clutches of Covid, with its release date being put back several times. Re-shoots, added staffing costs, time-sensitive brand deals, and studio costs have skyrocketed, leaving many involved scratching their heads when it comes to managing their finances moving into 2021 and beyond.
CMF Capital has been helping clients free up working capital and improve their cash flow by arranging asset finance for purchase or rental of:
- Outside Broadcast Equipment
- Editing Equipment
- Storage Infrastructure
- Location Vehicles
- Broadcast Cameras & Lenses
- Audio Visual Equipment
- Post Production Equipment
- Sound Stage Equipment
- Editing Suites
- Recording Studio Equipment
Exploring traditional and non-traditional finance options, we work with our clients to establish the most cost-effective way of freeing up working capital, so they can focus on strategic planning and budgeting for future projects and getting production off the ground.
Some of the most popular finance options are:
Hire Purchase – allows you to spread the purchase cost of an asset over a longer period, typically 3 to 7 years, with regular fixed payments. At the end of the term, you take ownership of the asset.
Finance Lease – allows you to hire the assets in question, typically over 3 to 7 years. At the end of the lease term, you can either continue the lease, upgrade the assets into a new agreement or sell the asset and share in the sale proceeds.
Operating Lease – allows you to hire the assets in question, typically over 3 to 7 years. A residual value is set, meaning your regular payments are less than with a Finance Lease. At the end of the term, you can either return the asset or continue the contract paying an agreed fair market rental.
Commercial Loan – you borrow a certain amount of money over a longer period, typically 5 to 20 years. Although loans can be obtained for a variety of reasons, we typically provide these for commercial property acquisition and renewables projects. In the latter case, for certain projects, this can be fully funded with repayments made from energy savings.
How we help Broadcast & Production companies manage their cash flow – read more
We are able to help our clients review their current agreements and consolidate existing finance for peace of mind, ensuring they have the most competitive rates on the market.
At CMF Capital, we are proudly independent, meaning we can offer products and services from a hand-picked group of bespoke lenders, ensuring our clients secure the most cost-effective deals on the market.
If you’re interested in exploring the options available to you, we would love to hear from you. Why not book a call with one of our specialist advisors to see how we can help you free up working cash flow.