Enrico Fadani
Business Lawyer
and Founder FinFilm
Michel Morales
Producer
and Founder FinFilm
Movie Goes Finance
We support filmmakers to get their projects on the big screen.
FinFilm is an innovative platform for financing European film projects. FinFilm is the result of a longstanding cooperation between EF Advisory Group SA, a Swiss consulting company for entertainment finance and AVIV Pictures GmbH, a production company from Germany.
FinFilm arranges film financing by means of a co-production in the form of co-financing. The investment protection is provided by a German insurance group, with the effect that no completion guarantee (completion bond) is required.
EF-Advisory Group SA
FinFilm is against discrimination and all people of any gender are welcome. We use the generic masculine to simplify the legibility and layout of our information.
In particular, FinFilm enables the structuring and arrangement of interim financing and GAP financing.
Even fully financed film productions find themselves challenged by the need to cashflow the upcoming production due to the delayed payment of existing financing commitments. FinFilm ensures liquidity during the ongoing production process.
If, on the other hand, the overall film financing of a production has not yet been fully closed before scheduled start of production, FinFilm closes the gap (GAP financing) and covers the missing amount of the calculated production costs.
In special cases, FinFilm also arranges access to mezzanine.
Public Film Funds
Fin Film arranges the pre-financing of committed production funding from EURIMAGES, Media / Media Plus, FFA, as well as the regional film funding. In individual cases, FinFilm also organizes the pre-financing of funding commitments from national and regional production funding in European member states.
Tax Rebates
In individual cases, FinFilm arranges the full or partial pre-financing of tax rebates or similar tax relief instruments in European member states (tax rebates / tax credits) such as “The Tax Rebate for International Productions (TRIP)” in France or the Italian Tax Credit.
Presales
FinFilm arranges, depending on the territory and distributor, the cashflowing of presale contracts of national license rights. The amount of such bridge loan is determined on a case-by-case basis.
Minimum Guarantee
FinFilm arranges the pre-financing of a minimum guarantee, whereby the creditworthiness of the cinema distributor is evaluated. The language of the guarantee must correspond to the usual market criteria and be payable without objection upon delivery.
GAP Loans
FinFilm arranges loans (so-called GAP Loan) to close financing gaps if this closes the overall financing of the production. The GAP loans should generally not exceed 15% of the total budget. In addition, the estimated sale proceeds deriving from the license rights of unsold territories shall cover at least 300% of the GAP loan.
Mezzanine
In individual cases, FinFilm arranges mezzanine contributions of up to 10% of the total film production budget. Requirement for this mezzanine film financing is a first rank recoupment of 120% of the investment and a net profit participation.
FinFilm requirements
FinFilm arranges the film financing on the basis of existing framework agreements with pre-determined rules and requirements.
These are our rules:
Budget from 3M euros
Projects with a budget of less than 3 million euros can usually not be considered
The production budget shall be drafted accordingly to the FFA guidelines for project film funding part B. For international productions different rules may apply.
Packaging completed / ready to shoot
The key elements (cast & crew) are attached.
Locations are fixed and available.
The shooting schedule is finalized and adapted to specific locations.
Proof of filming rights (filming contract, screenplay contract, etc.)
Budget and cash flow plan completed.
Co-production contracts and other financing contracts have been executed.
Collection Account Management Agreement (CAMA) is completed. FinFilm accepts the collection account managers approved by Euroimages.
For German production FinFilm accepts occasionally local trustees.
Europan funding granted
Legally binding approval of the production funding shown in the financial plan.
In the case of tax credits / tax rebates, an additional, legally binding contract with local service producers stating the subsidies to be offset.
World sales with Sales Estimates
FinFilm accepts world sales agents with an international track record and operational presence in the most important film markets.
Sales estimates are considered confirmed if at least 3 countries from 2 continents have been sold and the proceeds achieved are not below the TAKE prices.
Financing closed (with GAP)
The film is considered “financed” if the negative production costs (including contingency) are covered by the sales estimates on a “take” basis plus non-refundable grant / tax credits.
Financing plan and proof of funds are made available.
Best practice example:
Ratio of finance elements for feature film production with international theatrical release:
- Equity / deferments: 15%
- Presales / Minimum Guarantee: 30%
- Soft Money / Tax Credits & Rebates: 40%
- GAP: 15%
Budget from 3M euros
Projects with a budget of less than 3 million euros can usually not be considered.
The production budget shall be drafted accordingly to FFA guidelines for project film funding Part B. For international productions different rules may apply.
Packaging completed / ready to shoot
The key elements (cast & crew) are attached.
Locations are fixed and available.
The shooting schedule is finalized and adapted to specific locations.
Proof of filming rights (filming contract, screenplay contract, etc.).
Budget and cash flow plan completed.
Co-production contracts and other financing agreements have been executed.
Collection Account Management Agreement (CAMA) is completed. FinFilm accepts the collection account managers approved by Euroimages. For German productions FinFilm accepts occasionally local trustees.
European funding granted
Legally binding approval of the production funding shown in the financial plan.
In the case of tax credits / tax rebates, an additional, legally binding contract with local service producers stating the subsidies to be offset.
World sales with Sales Estimates
FinFilm accepts world sales agents with an international track record and operational presence in the most important film markets.
Sales estimates are considered confirmed if at least 3 countries from 2 continents have been sold and the proceeds achieved are not below the TAKE prices.
Financing closed (with GAP)
The film is considered “financed” if the negative production costs (including contingency) are covered by the sales estimates on a “take” basis plus non-refundable grant / tax credits.
Financing plan and proof of funds are made available.
Best practice example:
Ratio of finance elements for feature film production with international theatrical release:
- Equity / deferments: 15%
- Presales / Minimum Guarantee: 30%
- Soft Money / Tax Credits & Rebates: 40%
- GAP: 15%
Procedure
Four steps to disbursement of the film financing
FinFilm has pre-defined and transparent criteria for approving film financing arrangements. Therefore, the path from the first contact to the payment is clearly structured.
From the checklist of required documents to reviewing the production to the necessary contracts, FinFilm has pre-agreed criteria for the film financing with investors and insurance companies.
STEP 1
Contact
Production contacts FinFilm
- Contact is made through the inquiry form, as all other inquiries cannot be processed (see button “INQUIRY FORM“)
- Send inquiry form to FinFilm
- FinFilm will review the request and will respond within 5 business days
- Mutual Confidentiality granted by NDA
STEP 2
Due Diligence
FinFilm examines the project
- Upload the documents to FinFilm secure data room
- FinFilm examines the documents
- FinFilm sends preliminary financing commitment and engagement letter
STEP 3
Legal
FinFilm sends the contracts
- Signing of the FinFilm film financing contracts
- Setup escrow account
STEP 4
Film Financing
FinFilm pays out funding
- Disbursement of film financing funds to escrow account
FinFilm return
FinFilm expects that all revenues are directed to an escrow account (managed collection account). In addition to the internationally recognized Collection Account Managers (> see Euroimages),
FinFilm accepts tax consultants, auditors or lawyers with proven experience for purely German productions.
The way in which the funds financed are returned depends on the type of financing.
SENIOR LOAN
- Financing of pre-sales or minimum guarantees are recouped directly from the theatrical distributor. If direct recoupment is not possible, recoupment is made through a specific corridor in the CAMA.
- Financing of cash-flowed subsidies are recouped by assigning payment claims against the funding bodies. If an assignment is not possible, the recoupment takes place through a specific corridor in the CAMA.
- Financing of cash-flowed tax rebates are returned by assigning the reimbursement claims to the respective tax agencies, with waterfall protection.
- Financing of pre-financed tax credits are returned by assigning the claims to the service producer, with waterfall protection.
GAP LOAN
- GAP Loan is recouped through the waterfall on a last-in-first-out (LiFo) basis.
- As a general rule, priority is only given to fees of the Collection Account Manager and World Sales Agent.
- The GAP loans are secured by pledging the unsold rights worldwide.
MEZZANINE
- In case of mezzanine contribution (own funds), the recoupment of such own funds plus agreed fees is granted priority in the waterfall over all other producers. The return of the profit sharing, on the other hand, takes place pari passu with all producers.
Pre-financed funding is returned directly by assignment via corridor
Pre-financed pre-sales and minimum guarantees are returned directly by assignment per corridor
GAP is returned LIFO via the Collection Account
Equity is returned with profit sharing via the collection account in the waterfall
Pre-financed funding is returned directly by assignment via corridor
Pre-financed pre-sales and minimum guarantees are returned directly by assignment per corridor
GAP is returned LIFO via the Collection Account
Equity is returned with profit sharing via the collection account in the waterfall
Team
Enrico Fadani
Founder
Enrico has been responsible for complex transactions in an international environment as a business lawyer for more than 25 years. He discovered his passion for film financing early on and shared responsibility for the development of various international film funding laws. He provides legal support to film productions in Germany and abroad in structuring and implementing financing. As a speaker and with the publication of articles he has dealt with the deepening of the critical topics of film financing and its implementation in the international environment
Michel Morales
Founder
Michel has been responsible for more than 34 films since 2000. Including “Quiero Ser”. This film won a student Oscar and another Oscar a year later, in 2001, in the Short Film (Live Action) category of the Academy of Motion Picture Arts and Sciences. The documentary series “Life Running Out of Control” also received prestigious international awards. In addition to other non-fiction content, Michel also participated in international feature films such as “Miss Conception” with Heather Graham and Mia Kirshner, “Good” with Viggo Mortensen, “Euphoria” with Eva Green, Charlotte Rampling, Alicia Vikander.
Oliver Mess
New Business Development
Oliver Mess has worked in Los Angeles on various productions for German television and has been Associate Producer of the US talk show ‘Skip E. Lowe “Looks at Hollywood” since 1998. Oliver divides his time between Hamburg and Los Angeles and has established business relationships (real estate, publishing, film) in both cities for many years. He has worked with Michel Morales on various international film productions since 2014 and they entered into a partnership in early 2018. Today Oliver is responsible for New Business Development.
Neni Gotzmann
Project Management
Neni Gotzmann has been active in the film and TV business since 1993. Initially at home in the creative departments of make-up, costumes, equipment and graphics, Neni switched to operational planning and international representation in 2007, where she was responsible for trade fair appearances, international license trading and new business, among other things.
She has been working in TV production companies since 2015, where she is responsible for the realization of international documentaries in various positions (project management, first recording manager, production manager).
FinFilm backed Projects
The Mothers
of Abductees
The Mothers of Abductees
A documentary about the emancipation movement of yemeni women, living under the Al-Houthi regime of terror since 2015.
https://mothersofabductees.com
LUTE
When Lute, an African girl flees from the traditional ways of an arranged marriage, she finds herself stricken by the horrors of the city street life until she is taken in by an unlikely counterpart, an idealistic prostitute who fosters Lute into becoming a strong independent woman.
KAYA
Josh Reginald Topize (KAYA), a young Creole learns his tough lessons in the gritty ghetto of Port Louis, Mauritius, while fighting to survive. Entangled in political turmoils, organized crime and police brutality, he embarks on a musical journey. A social drama about life and death unfolds.
PERFECT DAY
A young women wakes up – floating on a section of a destroyed airplane wing, with no clue of who she is or how she got there. In order to survive, she realizes she must dive through the plane wreckage below to solve the mystery. What she discovers will change her life forever.
ROBIN AND THE HOODS
For the tenacious 11-year-old Robin and her loyal band of friends ‘The Hoods’, the patch of overgrown scrubland at the end of their cul-de-sac is a magical kingdom. When the slippery property developer ‘Clipboard’ turns up and dazzles the parents of the area with promises of health spas and day-care facilities, Robin and The Hoods’ Kingdom is faced with an existential threat. Despite the children’s best efforts, their protests fall on deaf ears. When their parents can’t see the wood for the trees, The Hoods are forced to take matters into their own hands. The only thing beyond their colourful imaginations is losing their kingdom forever.
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FinFilm
A trademark of EF Advisory Group SA
Via alla Campagna 4
6900 Lugano
Switzerland
