Using Treasury Management For Movie and Entertainment Financing

Traditional Movie Funding Strategies Do Not Work

Financial experts describing the state of the Financial Markets always use the phrase “Investor Confidence”. No one ever uses the phrase “Borrower Confidence”.

This simple truth represents the key to understanding how to obtain the financing that your movie and entertainment project requires. Of course, a well drafted, well thought out movie and entertainment idea and pitch deck are required but in order to truly ensure initial investor/lender interest to facilitate your funding needs, borrowers need to create “Investor Confidence” by demonstrating that the capital provided is safe.
Financing is the most crucial aspect of any film project because the production team needs funding to pay for every step of the filmmaking process. Movie financing can be achieved through many different methods. If you are making a studio film, the studio itself will provide the funding. However, in independent filmmaking, the producer sources the budget. Securing funding for a film project can be an arduous task for filmmakers, but the three (3) main types to pursue are as follows:

1. Self Financing;
2. Crowd Funding;
3. Private Investors.

To obtain the financing from film investors, the producer must travel and meet with all potential investors, partners, banks and/or sponsors. This process is followed by every other film maker looking to get their film financed as well. Investors, often deluged by movie financing opportunities look for collateral in addition to high interest rates as well as a substantial percentage of equity in the project. As a result, the film makers are locked into a hunger games scenario, competing with each other all in an effort to gain the investor’s attention. This method of traditional movie fundraising does not work.

The Solution
Bach Capital Management (“BCM”) is pleased to be able to facilitate the acquisition of movie and entertainment financing through our ability to create investment grade collateral to support these capital raises through the BCM Treasury Management Investment Strategy as a Risk Mitigator (“TMIS Risk Mitigator”). The TMIS Risk Mitigator is the best risk mitigation/risk management strategy available today that provides tax advantaged above market annual cash-on-cash dividends payable quarterly along with principal protection.

Our methodology provides film investors in very high-risk movie and entertainment investment opportunities the ability to invest with little risk relative to these types of investments. At the same time, it affords those projects seeking financing with a solution that will facilitate their capital raises. Thus, resulting in a process that really takes the risk out of the investment for investors without the borrower incurring substantial cost or administrative burden. The TMIS Risk Mitigator changes movie and entertainment financing from “high risk – high reward” to “low risk – high reward”.

What We are Not
Our service is in creating investment grade collateral through the use of our TMIS Risk Mitigator methodology that will assist viable movie and entertainment ideas in obtaining the financing they require. We help facilitate the funding process with a proven method to add collateral acceptable to investors/lenders and can introduce you to capital sources once our methodology is adopted.

We are not lenders nor investors. We do not provide project funding and our fees are for services rendered. That being said, however, as news of our services spread, more and more investors have reached out expressing their interest in projects that have adopted our TMIS Risk Mitigator methodology. Those investors will be made available to you as part of our engagement.

We cannot and do not offer guarantees because ultimately whether you are funded depend solely upon the viability of your idea. There are thousands of projects seeking financing. By engaging us you differentiate yourself from your competitors and get the ability to obtain that critical first look from investors/lenders by having sufficient collateral to protect the investment amount at a very manageable cost. This differentiation will allow you to attract the initial interest and facilitate the funding process from investors/lenders because they know they will receive an above market Return on Investment (“ROI”) and equally important, their principal will be protected regardless of how the project and the Company performs.

The Process
a. A one-time Retainer Fee is required upon engagement which is scalable depending upon the amount of financing sought.

b. BCM will familiarize itself, to the extent appropriate and feasible, with the business, operations, financial condition, management, and prospects of the Client;

c. BCM will review, advise, and edit, if necessary, the Client’s Business Plan/Marketing Material currently being used to source capital;

d. BCM will attach its TMIS Risk Mitigator methodology to the Client’s Business Plan/Marketing Material providing both the risk mitigation, principal protection, and dividends from the 1st quarter of the engagement;

e. BCM will Introduce the Client to those investors/venture capital firms that work with us and have expressed interest in reviewing funding proposals for projects that incorporate the TMIS Risk Mitigator methodology into their Business Plan/Marketing Material;

f. BCM will participate in meetings with the investors/lenders sourced by the Client to explain how our process protects the investor facilitating the investment;

g. The engagement is for a one-year term which can be extended for additional years at no additional cost until financing is obtained;

h. The Client is only responsible for the monies actually needed to develop the Client’s project;

Please feel free to reach out to us at [email protected] for more information.

Michael Bach
CEO & Founder
Bach Capital Management