Minimum Guarantee (MG)
In these pre-sale agreements, the distributer agrees to advance a certain amount of money upon delivery of a certain project. THIS is called a minimum guarantee.
Typically, 10%of the mg is payable upon signature of the agreement and the remaining 90% is payable when the producer delivers the project.
BUT, if a project needs access to that remaining 90% to fund the production of the project, there are still options!
Most notably: Minimum Guarantee Financing.
This allows one to monetize these distributor commitments upfront, taking out a collateralized loan against these distribution promises as soon as the papers are signed.