What does Bridge Financing mean?
Bridge Financing refers to a short-term loan or financial arrangement used to cover immediate costs or cash flow gaps until longer-term financing is secured. In the entertainment industry, bridge financing is often used to fund a film or TV production during pre-production or early stages of filming before the main financing, such as from distributors or investors, is secured. Related terms include Gap Financing, which covers the difference between a film’s budget and secured financing, and Equity Financing, where investors provide funding in exchange for a share of the profits.
Example:The producer used bridge financing to cover the initial costs of pre-production while waiting for the main investor’s funds to come through.
Example: Many productions rely on bridge financing to keep the project on track while larger deals are finalized with distributors or studios.
Did You Know?
Bridge financing is commonly used in industries like real estate and entertainment, where large sums of money are often delayed until final contracts are signed!
