In Media Production Finance, certain parties only pay during, on or after Production Delivery. The Media Credit Guarantee allows Banks, Financiers, and other Lenders to lend money to the Producer with minimised default exposure. The Media Credit Guarantee makes sure 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
A contract-based Trade, where there is a Production to be delivered and, therefore, money to be received (e.g. Distributors).
Funding Receivables
A 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).