Media Credit Guarantee
Kerry London Europe can now offer a new Media Credit Guarantee Product.
If you would like to discuss your requirements with one of our experts, please send us your contact details.
Send your detailsWhat is a Media Credit Guarantee?
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).
What Risks Does it Cover?
Trade Receivable Claim Trigger
- The Production is Delivered according to its specification and 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).
Funding Receivable Claim Trigger
- The Production is Delivered according to its specification and 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).
Our Offering
- Our offering is designed for use for Independent Feature Films, TV Series, Animations, and Documentaries.
- The cover range is up to €5M per individual contract, with the option of multiple contracts per Production.
- We offer Worldwide (with few exceptions) Trade Receivable Countries with Funding receivable countries in UK, EU and other countries on request.
Often combined with Film Production Insurance, Film Completion Bonds and other specialist film and media insurances, this Surety Bond guarantees the two main types of contracts that are part of a typical Media Production; Trade Receivables and Funding Receivables.
Key Contacts
