Post by richardb67 on Jun 13, 2016 13:01:05 GMT
Hi,
just opened an account and noticed the film loan.
This seems strange to me, the listing states -
"We have seen evidence from a film distribution company that this film should exceed healthy box office sales of over £1m.
"
"Collateral has 100% funded this film and the loan is secured by a debenture over the film company.
"
"This gives a loan to value (LTV) of 25%. "
This seems very strange, the box office sales are turnover at the cinema of which only a proportion will go to the film company. The company then has to pay salaries, marketing etc etc so the value of the company will be a fraction of the estimated turnover. Am I missing something or is this effectively an unsecured loan which has been presented as having a LTV of 25 % ?
Hopefully I've misunderstood and someone can clarify this.
Regards,
Richard
just opened an account and noticed the film loan.
This seems strange to me, the listing states -
"We have seen evidence from a film distribution company that this film should exceed healthy box office sales of over £1m.
"
"Collateral has 100% funded this film and the loan is secured by a debenture over the film company.
"
"This gives a loan to value (LTV) of 25%. "
This seems very strange, the box office sales are turnover at the cinema of which only a proportion will go to the film company. The company then has to pay salaries, marketing etc etc so the value of the company will be a fraction of the estimated turnover. Am I missing something or is this effectively an unsecured loan which has been presented as having a LTV of 25 % ?
Hopefully I've misunderstood and someone can clarify this.
Regards,
Richard
