What about in events of default? By David Brown
What Happens If You Default? FilmMoney’s Approach to Risk, Recovery, and Respect
At FilmMoney and FM Lending LLC, we’re filmmakers first, lenders second. That’s why we do everything possible to avoid stressful litigation and maintain positive relationships with our borrowers — even in the rare event of default.
But let’s be real: film financing carries risk, and we’ve designed our system to protect both the capital we deploy and the producers we support. Here’s what happens if a default occurs and how David Brown and the FilmMoney team handle it with precision, professionalism, and protection.
First Things First: Legal Costs Are Covered
If a borrower defaults, our legal fees and collection costs are recoverable under the loan agreement. But that doesn’t mean we rush to court — quite the opposite. Our goal is project completion, not confrontation.
“We’ve been producers ourselves. The last thing we want to do is blow up a project — we want to finish it and help everyone get paid.” — David Brown, Founder of FilmMoney and FM Lending LLC
Power of Attorney & Power of Sale
As part of every loan package, FilmMoney requires a Power of Attorney / Power of Sale agreement. This powerful legal tool gives us the right to step in and manage the production if the borrower breaches the agreement.
What That Means in Practice:
We take temporary control of the borrowing entity and work with our clients to get them across the finish line.
We work with the completion bond rep to oversee daily operations and financials.
We ensure the film is completed and delivered to the contracted buyer.
Once we are repaid — including premium, principal, and default interest — we return control to the producer.
This allows us to protect our investor’s capital while keeping the production on track.
Default Interest & Incentives to Resolve
If a borrower defaults, an additional 2.5% weekly interest is added on top of the standard premium and fees. This isn’t punitive — it’s designed to encourage swift resolution and prioritize FilmMoney’s repayment during the recovery process .
Completion Is Always the Goal
Our financing model is built around the assumption that the film will get made and get delivered — because that’s how everyone wins:
The buyer gets the film.
The producer maintains credibility.
FilmMoney recovers the loan.
And no one ends up in court.
We work hand-in-hand with completion bond companies, legal teams, and producers to stabilize and deliver the project — not to dismantle it.
Bottom Line
At FilmMoney, we don’t just write checks — we understand the chaos and complexity of film production. If a deal goes sideways, we step in to steady the ship, not sink it. Thanks to strong legal safeguards like our Power of Attorney/Power of Sale and completion bond oversight, we have a clear path to recover capital without destroying careers.
Learn more at www.filmmoney.com or email us at hello@filmmoney.com to speak with David Brown and explore how we finance films the right way — with protection for everyone involved.