ABSTRACT
Debt is defined, and its role on the balance sheet is clarified. The five different types of debt used in film finance are described in this chapter: presales loans, gap loans, mezzanine loans, tax incentive loans, and bridge loans. Readers are taught when they would use each type, along with their costs and benefits. Statistics are provided to show how producers use debt over their careers. Readers are treated to a behind-the-scenes story about a particularly successful independent film.
