Completion Guarantor
A specialized insurer that guarantees a film will be completed on budget, enabling production financing from lenders.
Definition
A completion guarantor provides a bond ensuring that a film will be completed and delivered to specifications within a set budget and schedule. If production goes over budget or fails to complete, the guarantor steps in—either providing additional funds, taking over production, or repaying financiers.
This guarantee enables banks and investors to finance productions they otherwise wouldn't touch, knowing their investment is protected against production failures.
Why It Matters
Most film financing requires completion bonds. Understanding the guarantor's role helps producers structure budgets, understand oversight requirements, and navigate production challenges.
The guarantor reviews budgets, schedules, and key personnel before issuing bonds—their approval is often a prerequisite for financing.
Examples in Practice
A production goes over budget when weather delays push the schedule; the completion guarantor funds the additional days to ensure delivery.
During pre-production, the completion guarantor requires replacing a line producer they deem inexperienced for a project of this scale.
A guarantor takes over a troubled production after the original producer mismanaged funds, completing the film to protect their guarantee.