Pre-Sales
Definition
Licensing deals secured before a film is completed, typically based on the script, cast attachments, and producer track record. Pre-sales provide financing leverage because distributors pay a minimum guarantee upfront for specific territories. Banks and gap lenders often use pre-sale contracts as collateral for production loans. Pre-sales are common at film markets like Cannes, AFM, and Berlin.
Example
At Cannes, you secure a $50,000 pre-sale for German rights and a $30,000 pre-sale for Japanese rights based on your script and attached lead actor. You use these contracts as collateral for a production loan.
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