Every investment is a risky deal; still, every venture involves certain profit expectations. Experts say that the film financing is far more secure area of investment than one can even think. One of the most attractive aspects of it is that you can invest a relatively low sum of money on different stages of filmmaking and receive a tangible, long-lasting benefit in the end. Moreover, according to the British Film Institute studies, the UK film industry is on its upturn now. So, if you take your time to research multiple projects and invest in the most suitable one, you will most likely receive decent financial returns within a reasonable period of time. In order not to chatter too much and make the points mentioned above more feasible, let’s count the economic benefits of the film production.

Correlation of the amount of money you would like to invest vs profit
In fact, there is no correlation. Investing in a film may be exceptionally beneficial because you can get high profits for relatively low stakes. There are always various film production projects with small, medium and high budgets, so it is up to you to choose the level of financial commitment and decide what amount of money you’d like to invest. The core issue is that very often low budgeted films can become high-grossing and bring you impressive returns for low wasting. For instance, a low-budgeted film, the making of which can take up to $2 million, that is not a significant amount concerning film production, can bring you profit up to $11 million. Taking into consideration, that you can be not the only investor and very often film budgets are mutual, for sure the benefit will overcome the expenses. Different film finance companies can help you to decide about the film project and assure you about the profits. If you are interested in helping independent British films appear on big screens and reach success, Red Rock Entertainment headed by Gary Collins is the studio you should go for.

An option to choose at what stage of filmmaking you would like to finance
This financial aspect is one of the most essential. The reason is that being an investor, you can choose whether you would like to make your investments into the first film budget or buy rights for its distribution. In the film investment, you can receive your profits not only from film sales in the cinemas but also from its distribution. It is evident, that first benefits from the film investment come from box-offices, but in the field of film investment, they are considered to be the ordinary ones. The issue is that film investment can also provide you with profits from its TV, DVD and Internet distribution. So, depending on the project, sometimes it is even more profitable to invest in the rights for the film distribution than put all your money in its creation.

Long-lasting profit
Adding to the previous paragraph, it is important to mention that investments in the filmmaking industry are profitable because of long-lasting returns. Selling films to different TV channels around the globe or using them in pay-per-view market (it is usually practised in motels, hotels or resorts) can end up with the lasting income for up to 10-15 years. What is more, don’t forget that medium or high-budgeted films can also bring you additional profit regarding selling toys or other branded things, used by main characters, as well as, corporate logos or images. Is it possible to imagine all these financial benefits in any other spheres?

Tax relief
This aspect isn’t the new one, but it is one of the most significant and according to some data, not every investor is familiar with it. In the United Kingdom, film investment can give you exciting tax opportunities. Almost all film finance companies, including Red Rock Entertainment, work with EIS/SEIS film investment schemes. As the film industry in the UK is flourishing now, the Government has recently proved that it had already provided this field with the necessary money according to these schemes. These programs were created to encourage investors to get around of startups or small companies that might be considered by investors as too risky. The schemes are a little bit different. Enterprise Investment Scheme (EIS) refers only to individuals provided them with 30 percent relief on the cost of the shares for the tax year when the investment was made. The Seed Enterprise Investment Scheme (SEIS) offers investors with 50 percent relief on the cost of shares provided that maximum investment in a year can be 100.000 pounds. It should also be mentioned that both programs offer investors a possibility to claim for loss relief on their investment.

Relatively quick profit
If we compare the film investment industry with the other fields, we can notice that sometimes you make investments and even don’t know when you are going to get your profit and whether you will get it at all. For example, in the real estate field, you can invest your money in the block of apartments construction project and then you will have to wait until they are built and given for a sale or rent. Thus, from the moment of your investment until you will get your real profit it can pass an enormous period. In the film investment, you can choose a project, which is in its final producing stage and needs only insignificant money to cover the distribution costs. So, as soon as the film is presented in the cinemas, you will get your money from the first displays. It means that unlike the other industry, you will get your profit as soon as it is only possible.

Of course, the information given in this article doesn’t mean that film investment is always a safe deal. Every financial arrangement is a risky thing. Nevertheless, the commercial side of film investment does have its positive aspects a smart investor may totally experience.

Author's Bio: 

Elena Sheplyakova, independent writer, blogger.
Concentrates her attention on small business issues, online marketing tips, home improvement and organization, healthy eating habits, family living, personal finance management, self-confidence, self-improvement ideas, useful life hacks and beauty tips.