Film Finances was founded in 1950 for the purpose of giving guarantees of completion to financiers of motion pictures. At the time, producers of motion pictures were finding it increasingly difficult to borrow money from banks because the producers could not show how budget overages, if any, could be met; and the banks had learned by bitter experience that unfinished films had no value. The original founders of the company were themselves film producers who had learned that mortgaging all they owned against potential budget overages was not a sound proposition; however, unfortunately, that was the only way in those days to get a motion picture independently financed.  Film Finances was therefore formed to provide financiers with a service that gave them the assurance that the film would be delivered on time and that the over budget costs would not be the financier's responsibility. 
 
Since our formation, we have given completion guarantees to all the leading banks involved in the entertainment industry, and to all the major studios and distributors of motion pictures. We have now guaranteed the completion and delivery of approximately 6,000 Feature Films, Television, Series, Movies of the Week, Films on Tape, Documentaries and CD-ROM Productions shot in almost every part of the world. Budgets have ranged from $1,000,000 to $75,000,000, and with the rapidly rising costs of production, even this latter figure will soon be exceeded. We are proud to have guaranteed completion on some of the most successful motion pictures ever made, and likewise we are also pleased to have helped many first time producers and directors to make their first films. 

Since the formation of Film Finances in London, we have formed companies in the United States, Canada (Toronto and Montreal), Denmark, Italy, France, India and Japan. Additionally, we have a representative office in Australia.  By virtue of having offices around the world, we are able to monitor pictures around the clock and we are further able to call upon our contacts to give our clients information concerning motion picture and television production in virtually every country where pictures are being produced. 

All motion pictures guaranteed by Film Finances are insured through the London insurance market, and pursuant to these arrangements financiers of motion pictures which are guaranteed by Film Finances receive assurances that their investment will be secured by Lloyds of London and Underwriters.  

 
 
 

As soon as an inquiry is made for us to issue a guarantee, we request the script, the shooting schedule and the budget. We prefer that all three documents have already been approved by the financiers and distributors of the picture, if any, although we are prepared to consider these documents prior to such stage. 

These three documents are examined in detail. Sometimes they are rejected, but more often than not we move to the next stage, namely a meeting or meetings with the individual producer, the director, the production supervisor and/or manager, the production accountant and sometimes the art director, and any other production personnel whose views and explanations about the particular project we consider to be of assistance. On the basis of these views and explanations, together with the papers submitted, we decide whether the project presented is feasible. If a positive decision is made, a "letter of intent" is issued by us confirming that, in principle, we are prepared to go forward with the giving of a Guarantee of Completion, subject to the fulfillment of certain stated conditions.  Generally speaking, these conditions are what could be called standard, namely, that we are satisfied that finance equal to the approved budget for the film is available; that all the personnel, be they artistic or technical, are available as required for the making and completion of the film, and other matters such as insurance, studio and location agreements are satisfactory. The letter of intent will also list a number of budget items such as publicity, music and legal costs and sometimes finance charges, if not included in the Budget, which we consider outside our ambit of responsibility and therefore items for which we are not responsible. These above-mentioned conditions are incorporated in an undertaking required of the producers. The letter of intent specifies our fee for the giving of such a Guarantee, namely a percentage of the approved budget less the contingency allowance (which is approximately 10% of the "Above" and "Below the Line" budget) and our fee.  

 
 
 

When a letter of intent is issued and the project is approved, we then commence work on the legal documentation, which is done in-house. In preparing the documents, we require the fulfillment of certain standard conditions: we need to be assured that finance equal to the approved budget for the film is available; we need to be satisfied that all personnel - artistic and technical - are available for, and indeed capable of, the making and completion of the film; we need to be satisfied that insurance, studio and location arrangements are satisfactory. We require to see the documents to the acquisition of the basic story and/or novel, the screenplay and the music in order to be sure that the production company is entitled to make the film. We are concerned that service agreements with the director and artists do not grant rights which would seriously endanger the delivery of the film pursuant to the Guarantee. 

Film Finances is entirely an independent completion bond company with no affiliation. Being truly independent we are able to advise without the embarrassment of any potential conflict of interest. Consequently, we are able to act in order to protect the interests of our clients at all times. 

 
 
 

We need to be satisfied at all times that the production whose completion we have guaranteed progresses satisfactorily and on schedule. However, it is not our intention to be a "big brother" waving a stick. We appreciate only too well that making motion pictures is a creative process employing fine talents. We like to have a very close relationship with our producers, directors and key production personnel, and we are convinced that these relationships are more valuable than placing someone between us. This clearly involves a very close liaison with the production company, and we achieve contact by way of telephone, fax and e-mail. Our monitoring process requires the production to fax to us daily shooting progress reports and a weekly cost report in order to properly be able to evaluate the progress of the film. We also make periodic visits to the shooting area, either to the studio or to the location, wherever it might be. 

The process of completing a motion picture continues well after the end of the actual shooting period. We also have a very experienced post production staff that monitors the post production of a film via a post-production schedule and updated cost reports until the film is actually delivered to the distributor. 
 
 
 

If progress causes us concern, one of our representatives will remain on set or in daily contact with the production staff. Only when needed we may require explanations from and demand meetings with any personnel involved with the production of the film. Fortunately with our experience, and through working with people we know, this is a very rare occurrence. However, we do occasionally have to fund claims, and are able to utilize our access to considerable cash resources and insurance policies. 

 
 
 

Generally, we finance all claims made against us from our internal resources. However, to protect these resources, and to give additional comfort to financiers, we maintain a substantial insurance program, which is underwritten in the London market by Lloyd's and first class companies. The program is not subject to any deductible and any investment made in pictures by the financier is covered by our Underwriters from the first dollar (i.e., the Underwriters assume liability from dollar one on all pictures guaranteed by us). Neither we nor the financiers have ever experienced difficulty with our financing overruns made on pictures guaranteed by us.

Our guarantee has been accepted by all the major banks in the USA, as well as banks throughout Europe, Australia and the Far East.