New Media Credit Guarantee Introduced

Kerry London Europe has unveiled a new media credit guarantee product aimed to help independent production companies and underrepresented groups access cash-flow financing for films, series and animations.

In traditional media production finance, certain parties only pay during, on or after production delivery. The media credit guarantee allows banks, financiers and other cashflow providers to lend money to independent producers with minimized default exposure. The media credit guarantee is meant to ensure that all contractual payments of those parties are properly dispersed.

The media credit guarantee is a surety bond that covers two types of contracts that are part of a typical media production: trade receivables—contract-based trade, where there is a production to be delivered and, therefore, money to be received (e.g. distributors)—and funding receivables—contract-based funding, where a production has to meet certain criteria according to set regulations, and when those are met and proven, additional money will be received (e.g. tax incentives, tax credit, grants).

The trade receivable claim covers if the production is delivered according to its specification, all other parties have accepted delivery, and the obligor (distributor) is already liquidated or proves unable to pay on delivery (payment doesn’t arrive on the contractual due date).

The funding receivable claim covers if the production is delivered according to its specification, all other parties have accepted delivery, and the obligor (funder) is already liquidated or proves unable to pay after expenses have been proven e.g. by an audit (payment doesn’t arrive on the contractual due date).

The offering—from Kerry London Europe through an exclusive partnership with Newpoint RE, Certus Media and Guaranteed Completions—is designed for use for independent feature films, TV series, animations and documentaries. The cover range is up to €5 million per individual contract, with the option of multiple contracts per production.

The offer is worldwide (with few exceptions) trade receivable countries with funding receivable countries in the U.K., E.U. and other countries on request.

“For too long, securing cash-flow financing for a film has been complicated for many talented independent producers in film, TV series and animation,” said Ansley Williams, client services director at Kerry London Europe. “The American Film Market is the perfect launchpad to bring our innovative financial guarantee to the film industry, banks and financiers. The media credit guarantee will have an incredibly positive impact and help to bring more films and animation from diverse, talented filmmakers to life by reducing time spent negotiating with lenders.”