Completion Guarantee Bonding for Major Media

A completion bond is an essential part of closing on bank & investor capitalization, negotiating from a position of strength on distribution deals by getting your film into the can.

The completion bond instrument is one of the two most important steps to getting your independent film, film group or film company, to achieve the synergy of creative & financial film success.  Weather  on  the  festival circuit and sold to distributors, or smartly negotiating and buying your own distribution through securing the Financial Guarantee Bonding (the other most important step) for your investors risk.

You may have heard of these types of structures as the Studios secure their risk abatement structures to protect all parties of the production, the project investors, the producers, distributors, theaters and marketing outlets, and this even protects their standing with their public stock investors.

Most independent films require a completion bond to secure a film’s financial package structure. A bond is basically an insurance policy that a producer takes on to secure the interest to financiers, lenders, and distributors as a guarantee of performance.

The Bond agreement(s) ensure that the film will be delivered on time and within the proposed budget. Thus, ensuring that the film (as a media product) will be delivered to market on time to meet with the allotted synergy of advertising, treater reserves for showings, time slots for seasonal viewing on television & streaming medias etc. as per your quotes to investors & lenders to capture the most favorable returns on their capital.

Financiers find reassurance (through risk abatement) in a bond, as a guarantee the film will be completed without budget restraint(s), or they’ll be compensated. Investors will be far more secure and protected with their investment in your film when it is bonded and sure to be completed.

To satisfy both lenders and other financiers, the bond company will ask all current investors to put their committed money into an escrow account, which guarantees to the various lenders and financiers that the appropriate funds are available and ready to be released when all contracts close .

Our prepared Completion Bond Guidance for Film & Media can provide you with our process for review and underwriting.