Began as producers & recognized problem
Before launching BondIt – our speciality financing operations to cover union deposits for feature films and theater productions – our team at Buffalo 8 Productions produced over 30 feature films.
Ranging in budgets and sizes — we dealt with the development, pre-production and post-production process — and branched in to the sales side of the business out of the necessity to build a revenue stream capable of sustaining a functioning business model.
As we grew as producers the company grew as well — offering new projects, larger budgets and further opportunities for the model we had built to pivot, adjust and expand.
More than anything – we recognized that capital allocations had changed for many of our colleagues as producers and production companies – with tight operating budgets and even tighter margins of profitability.
In many industries today – entertainment included – traditional banks and lenders have held back on lending out of the fear of the recent economic downturns – leaving producers and production companies cash tight almost year round.
Expanded to offer larger films under writing cash-flow solutions for union deposits
The newest expansion of BondIt will be to enter the market of $5M – $50M films – paying union deposits out of their budgets.
While these entities are certainly less cash poor – they are still however in need of operating capital throughout production regardless of the bottom line.
In short, we are entering this space to underwrite union deposits at lower rates between 3%-6% — giving larger productions the opportunity to utilize our services without paying larger premiums.
As a producing colleague of $20M+ features recently stated during a discussion of our expansion; “no film ever has enough cash, regardless of budget”. We’re seeking to solve that problem to open up additional cash resources which are currently being held by the Guilds.
Growing to service the international markets
Additionally, our expansion efforts include introducing the model in to international entertainment unions who operate on similar guild deposit protocols.
We want to open up the ability for international productions – whether utilizing North American unions abroad or localized unions internationally – cash flow solutions.
Having shot/produced in a variety of locations over the years – we are excited to offer new solutions to these growing production centers around the globe.
Attended Cannes with our library and recognized an additional problem
At Buffalo 8 Productions we attend the major film markets each year to continually sell/license our library of content.
This year we attended on behalf of both our library and the growing BondIt business – as we offered a new solution to the producers and financiers in attendance.
As we networked with various colleagues – new & old – we uncovered yet another cash flow issue – the sales agent distributor and the sales agent filmmaker dilemma.
Essentially, film sales is very much like real estate – with a middle man broker (sales agent) representing a propriety (film) and selling multiple buyers internationally (distributors).
The issue being, that the cash flow from each of these entities is sluggish due to the extended net-payment (overall time the payment takes to be 100% submitted). For example, Netflix pays out on 365-450 day net terms – meaning that the sales agent has to wait nearly a year and a half to get paid their 15%-25% and the filmmaker even longer for the processing of their sales agents accounting.
Solving the problem for both the filmmaker and the sales company
We’re excited to announce that BondIt is expanding to offer solutions to this sector of the business as well.
BondIt will soon be laying out an extended platform that underwrites a cash-flow premium between 10% – 20% to cover these distribution fee deals within 24-48 hours — whereby BondIt provides instant liquidity for deals that may take up to a year and a half to materialize from the distributor directly.
With both filmmakers and sales agents tightly strapped financially when deals are made – BondIt will service both the individual filmmakers looking to monetize their deals as well as the sales agents/agencies looking to monetize their licensing deals as well.
Whether you’re a filmmaker with a single title looking to license quickly and generate quick cash flow or a sales company with a 1,000 film library looking to monetize/cash-flow your Netflix distribution deal – BondIt is the solution.
Beta testing will begin in July and official launch is scheduled for September 2014.
BondIt was founded by independent film producers Matthew Helderman & Luke Taylor of Beverly Hills based Buffalo 8 Productions. Having produced 30+ feature films, the team recognized a dilemma in the production process — union deposits — and launched BondIt to resolve the situation to assist producers & union representatives alike.
