Things You Must Know Before Financing a Film

I. BUDGET

1. How much is the total budget, and does it include the declared budget?

2. What is the total production budget? What is the total declared budget?

3. What are the total production costs?

4. Agreement on script costs.

5. Bargaining questions.

6. Total budget stamps as an attachment to the contract.

II. Contribute

1. Amount of contributing.

2. Contribution currency.

3. Investment ratio.

4. Contribution time or conditions.

5. Other funding methods.

6. Which account is the investment fund transferred to?

7. Transfer or subcontracting of capital contribution.

8. Restrictions on minimum investment funding.

9. Pay attention to monitoring the investment of the project master.

III. Execution of Budgeting

1. The establishment of a special account for the crew.

2. Supervision of accounts/cast accounts that receive investment funds.

3. Which party is responsible for the management and establishment of the film funds?

4. Formulate management measures for the use of film funds.

5. Which party does the accounting records?

6. Does the expenditure of funds require the consent of all parties?

7. Do you need notes for spending funds?

8. Submission and audit of the Fund Usage Report.

9. Treatment of investment surplus.

10. Handling of actual cost overruns.

IV. Issuance Proceeds

1.Which party is responsible for collecting the proceeds of the issuance?

2. How to supervise the proceeds of issuance?

3. Is the base of income right box office income or total income.

4. Revenue ratio of investors

5. How to calculate the total profit of the film?

6. What does the total film revenue include?

7. What does the total cost of the film include？

8. Is there a dividend for the main creative team?

9. Rewards for sponsors and advertisers.

V. Settlement

1. Settlement base

2. Settlement time

3. Conditions of settlement

4. Proportion of settlement

5. Settlement procedures

6. Multi-party settlement

7. Taxes

8. Account for settlement collection

9. Responsible party for the loss

VI. Liability of Breach

1. Liability for breach of contract

2. Overdue liability for breach of contract

3. Liability for breach of contract for misappropriation of funds and illegal use.

4. Payment of compensation

5. Joint liability.

VII. Derivative development

1. Priority investment right for subsequent product development

2. Revenue rights for subsequent product development

3. Revenue rights for derivatives development

VIII. Special investment

1. Fund Investment

2. Fixed-income investment

3. Pair Bet Agreement