It s a very speculative bet to make a film, so one should be very conservative their first time out. The first film should serve to showcase the filmmaker s talent in order to pave the way for the next, more ambitious project. Therefore, it is more important to have a completed project, whether it is a short or a feature, than something that is incomplete because the money ran out. I think that credit card financing is a pyramid game that filmmakers should resist, Beer advises. Get a loan from a friend.
Beer suggests memorializing the loan with an investment or a loan agreement.
In the event the loan goes bad, the lender should be able to write off that loan for tax purposes. Borrowing guarantees the filmmaker more favorable payment terms unlike the credit card bill which is due every month and the double digit interest compounds daily. That s the alternative, concludes Beer. You can always say to a family member or a friend, look, you see what s going on. This article appeared in the November 1996 issue of The New York Screenwriter Monthly.