Bridge Financing
Short-term loans that provide funds until permanent financing is secured for a film production.
Definition
Bridge financing in film is short-term funding that covers production costs until permanent financing (such as distribution advances, tax credits, or investor funds) becomes available. It "bridges" the gap between when money is needed and when committed funds arrive.
Bridge loans typically carry higher interest rates due to their short-term, higher-risk nature. They're essential for keeping productions on schedule when financing has timing gaps.
Why It Matters
Bridge financing enables productions to maintain momentum even when permanent financing is delayed. Without it, timing mismatches between committed funds could derail entire productions.
Understanding bridge financing is crucial for producers managing complex film finance structures.
Examples in Practice
A production using a bridge loan to begin shooting while waiting for tax credit advances that take months to process.
Bridge financing covering payroll until a streamer's guaranteed minimum payment arrives after delivery.
A film using bridge debt to lock in locations and talent while completing a foreign pre-sales round.