The role of film completion guarantee

The film completion guarantee does not guarantee the profit of a film, but ensures that a film can be completed within the budget. If the film cannot be completed on schedule, the film guarantee company will accept the film production and compensate the investors according to the promised insurance amount. Usually, small and medium-sized independent filmmakers can't raise enough money to shoot a film and apply for a loan from the bank. Banks need to review major agreements such as the film pre-sale agreement and the work contract of the creative staff. These are usually endorsed by third-party guarantee companies before banks can issue loans. Here, the ultimate film guarantee is actually to provide guarantees to financial institutions such as banks rather than producers. At present, large film projects will also use the final film guarantee to borrow money from banks and use leverage to amplify the effectiveness of funds.

The most fatal obstacle to the implementation of film guarantee system in China is censorship. Although the script review is changed to outline review at present, it actually poses a greater potential threat to the producers. After the project was filmed and submitted for trial, the SARFT failed, and it had to be cut, revised and supplemented again, which increased the cost and time. If the producer can't get the film release license in the end, all the investment and efforts will be in vain. However, there is no such compulsory examination and approval system abroad, so if the film deposit is implemented in China, film examination and approval is a problem that must be solved.

In the process of making the whole film, the guarantee of the completion of the film must be highly professional. Not only should we be familiar with the script, the main creative staff, the shooting plan, the financial budget, the procurement process and the details of the scene, but we should also understand the means of fund recovery such as copyright trading, distribution and publicity, and cinema schedule, so as to find a home for the accepted film copyright after settlement. At present, the marketization of domestic film and insurance industry is short, and the lack of systematic and clear salary system and trade union system completely restricts the implementation of film guarantee. On the other hand, there are few professionals who know both the professional knowledge and process of film production and the professional knowledge of investment, finance and insurance. Even if large insurance companies want to carry out this business, there is no professional and experienced person to operate it.

Despite the difficulties, there are needs and opportunities. Today, Hollywood studios have become investment funds, banks, copyright management and distribution institutions. Boda Film, the first film guarantee company in China, has become a powerful promoter and service provider for the further development of the film production industry in the financial industry. Under this trend, there is an urgent need for people with cross-industry professional knowledge, courage and passion to build a bridge between finance and film with their wisdom and their own ability, and realize investment rationalization and production specialization. Whether the final film guarantee can be established and realized through the allocation of resources, exquisite design, professional training and talent mining, and meet the needs of investors and producers, is a subject worthy of deep thinking and practice.