FREQUENTLY ASKED QUESTIONS

Q: I have a great script, can I get a loan?
A: No. Typically, producers have a fully packaged project prior to approaching a bank. JFEF lends against pre-sale distribution contracts and as such, a International sales agent is necessary to make pre-sales in order to secure collateral for the bank.

Q: Can you find me distribution?
A: No. While JFEF lends against pre-sale distribution contracts, JFEF does not secure distribution for films. The producer will need to find a International sales agent who is capable of selling the film.

Q: Can you find me a International sales agent?
A: Generally, JFEF cannot refer producers to a International sales agent without a prior existing relationship.

Q: Where can I find a list of International sales agents?
A: A list of International sales agents can be found at http://www.ifta-online.org.

Q: My International sales agent has never worked with your bank, can I still get a loan?
A: JFEF is always happy to meet new people, however, JFEF will need to conduct due diligence on the International sales agent. Depending on JFEF's assessment, you may or may not be able to secure a loan.

Q: What is the budget range for films that you can finance?
A: JFEF can arrange financing for films budgeted between $1MM - $40MM.

Q: What are the Bank's parameters on Gap financing?
A: Generally, JFEF can arrange Gap finance up to 20% of your budget. The overall level of Gap financing depends on the quality of International sales agent, quality of current pre-sales already in place, loan amount, existing relationship/history with Bank, etc. A number of bankable pre-sales are required before a project can be considered for Gap financing.

Q: What do you take as collateral?
A: JFEF lends against pre-sale distribution contracts to creditworthy distributors. In addition, JFEF lends against unsold distribution rights (i.e. Gap financing). JFEF may also take additional collateral.

Q: Do you lend against "soft money"?
A: Yes. In addition to pre-sales and unsold rights, JFEF can lend against various soft money sources.

Q: My bank loan is not enough to cover my budget, can you raise additional funds?
A: Yes. For select projects, JFEF has the capability to raise additional financing in the form of mezzanine debt (i.e. "super" Gap) to cover the remaining portion of your budget.

Q: What is the duration of a typical loan?
A: Generally, loans with JFEF are 14 months in duration.

Q: Do you finance genre films and theatrical level product?
A: JFEF will consider both genre and theatrical type product.

Q: Do you only finance films?
A: JFEF is always open to new business. Typically, a project should have a source of guaranteed returns which can be used for collateral. Examples of other types of projects on which we will work include television shows, video games, concert DVD production, and even production of commercials.