Minimum Guarantee (MG)

This is still in the same vein as what we previously talked about with pre-sale agreements... When a production is able to sell distribution rights to their projects before beginning production on their project in order to have capital to actually fund the creation of the project.

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.

What is 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.