Financier
From ForcaWiki, the simple encyclopedia
| In one sentence | A person or company that puts up cash, goods, or services to help make a movie, in exchange for either being owed money back or owning a piece of it. |
|---|---|
| Category | Film and Television |
| Related | Equity, Debt, Loan |
Imagine three different classmates all want to help fund your lemonade stand. One lends you 20 dollars and just wants that same 20 dollars back later. Another gives you 20 dollars but wants a slice of your actual profits instead of a fixed amount back. A third does not have cash, but offers to lend you their cooler and cups for free all summer. All three of them are helping finance your stand, just in different ways.
A financier is exactly this: any person or company that provides cash, goods, or services to a movie in exchange for either a Debt, meaning they are simply owed money back, or an Equity ownership stake, meaning they own a piece of the movie and share in its profits or losses. Financiers are sometimes just called investors.
Fun facts
- The same movie can have many different financiers at once, some who only want their money back with interest, and others who are betting on a bigger reward by owning a piece of it.
- A financier does not have to hand over cash to count. A company that provides free equipment or services in exchange for a stake in the movie is still considered a financier.
- Deciding whether to offer a financier debt or equity is one of the biggest decisions in setting up a movie's financing, since it changes who gets paid first and who shares in a hit.