Export Finance and Insurance Corporation (EFIC) , Australia’s export credit agency, will help producers finance Australian film and television productions for export to the world with its new Producer Offset loan.
In collaboration with Screen Australia, EFIC has develop the new loan facility to provide financial support to eligible Australian film and television productions with international distribution agreements.
EFIC’s Producer Offset loan complements the Australian Government’s Producer Offset incentive which is designed to help smaller productions that are eligible for the Producer Offset incentive but may have difficulty attracting finance in the commercial market.
Angus Armour, EFIC’s CEO and Managing Director, explained that “the loan can free up cash flow for a production and bridge the funding gap between when a production company incurs production costs and when it receives the Producer Offset through the taxation system.‟
The Producer Offset loan is available to producers who have a successful track record in delivering film and/or television productions, and who have a Provisional Certificate from Screen Australia stating the estimated level of qualifying Australian production expenditure for the project.
“Financing is often a challenge in the film industry, especially for smaller productions”, said Dr Ruth Harley, CEO of Screen Australia. “Great Australian productions can often suffer when there is a gap in financial support. Screen Australia welcomes EFIC‟s new Producer Offset loan as another financing option for Australian producers”.
EFIC will lend up to 85 per cent of the estimated Producer Offset to eligible production companies that provide the required security, including a completion guarantee.