This P2P Lending Platform Offers Crowdfunding for Movie Productions
Funding an independent film is an exceedingly difficult task. It's just not easy to find someone willing and able to fork over huge sums of money when all you really have is an idea, and perhaps the promise of royalties. Furthermore, most of the people who bankroll films belong to an exclusive society to which very few of us have access. As a result, the vast majority of films are underfunded, if at all.
According to a report from the Sundance Film Festival, the average indie film enjoys a budget of less than 750,000 dollars. Occasionally a film like The Blair Witch Project is touted as having grossed millions off of a "shoestring" budget, but the reality is quite different. Indeed, the original production only cost around 50,000 dollars, but the final piece—the carefully edited and produced version that earned millions at the box office—cost well over 600,000 dollars in post-production.
The good news is there are peer-to-peer lending platforms that actively seek to fund films, and the financial experts at P2PIncome have taken the time to list the best site EvenFi. Both platforms are excellent and trustworthy, and they share a passion for the industry. If you're interested in broadening your investment portfolio while helping up-and-coming film makers, this p2p platform is worthy of your consideration.
EvenFi
In 2018, Italian blockchain-finance company Criptalia rebranded as EvenFi, "with the aim of democratizing finance through technology," and making a financial future that was "simpler, free and decentralised." The expanded the focus of the brand to include crowdfunding projects that made a "social impact," such as educational exhibits, green-energy solutions, SME's, and yes...films. Those seeking funding for an art exhibit or an indie film are welcome to submit their proposal to EvenFi, which has already successfully funded films.
The Loan Application
When you enter the EvenFi site you'll find a sophisticated website designed to welcome investors and borrowers alike. Filmmakers looking to fund their project will select the For Companies button, which takes them to the loan-application page. The straightforward online form allows them to initiate the loan process with EvenFi, by letting them know how much they would like to borrow, and providing a phone number and a Value-Added Tax (VAT) number. When they select the Apply for a loan, and a representative will contact them to discuss the options.
What information must be provided?
In addition to the obvious documentation, such as a personal ID and bank information, EvenFi will ask for proof of establishment. In other words, EvenFi will request documents that prove the borrower is a valid business entity with 3 to 5 years of activity, of which the preceding 2 years have been "in the black" (i.e. profitable). Based on the bank information and business history, EvenFi will assign a credit score to the borrower-entity, and that will determine whether the entity qualifies.
How much can be borrowed?
EvenFi offers loans of up to 500,000 euro, depending on the nature of the project, the credit-worthiness of the applicant, and the loan structure. For example, the maximum amount available for a standard loan (monthly payments) is 300,000 euro, while the most they offer for a bridge loan (interest only) is 150,000 euro. If the applicant has poor credit or little reported income, EvenFi might not offer more than 50,000 euro. On the other hand, a well-established borrower with excellent credit might be able to get a customized loan. Successful projects can apply for addition funding, with a 5-million-euro total cap.
What kind of loan structure are there?
EvenFi offers several types of loans:
- Standard Amortization - 6 to 48 months/up to 300,000 euro - the traditional loan format, where the borrower makes monthly payments on the principle and interest throughout the duration of the loan.
- Bridge Loans - 4 to 12 months / up to 150,000 - a loan that allows the borrower to make interest-only payments for the duration of the loan, followed by a single payment of the entire principle when the loan comes to term.
- Bullet Loans - Like bridge loans, bullet loans allow the borrower to make regular interest payments, while paying off the principle in lump sums. While a bridge loan usually entails one payment, bullet loans often break up the principle into several payments.
- Tailored Loans - EvenFi occasionally offers custom-tailored loans designed to facilitate the needs of the borrower. These are particularly relevant when the project is likely to begin drawing revenue during the term of the loan.
What interest rates are paid?
Interest rates on EvenFi range from 6 to 9%, depending on the loan structure, the amount borrowed, the credit score established during the application process, and other factors. By way of example, The film "Dark Matter" received a 55,000-euro 12-month loan from a total of 847 EvenFi investors, at an interest rate of 9%. Similarly, ASD University Basket Potenza sought a loan to help fund the documentary "Come on, let's play!" about the Amateur Sports Association of Potenza. They received a 9-month 28,000 euro bullet loan at a rate of 4% from a total of 205 investors. That rate might seem very low, but the applicant has an "A" credit rating, which likely helped them secure such a rate.
How long does the application process take?
EvenFi has excellent customer service, and replies to applications within a few business days. A representative will contact you by phone and request you send the necessary documentation via email. Thereafter, you should have your answer within 2 business days. Borrowers who have been approved can expect to receive the capital within a week.
How much does the application process cost?
EvenFi charges a loan-origination fee that it based on the conditions of the loan. There are too many variables to provide an exact figure, but as a general rule EvenFi makes every effort to realize the goals of the borrower. In addition, there are no hidden or invisible fees involved, so the origination fee will be the only fee paid.
Market Type
Business Loans
Average Returns
7.4%
Minimum Investment
EUR 20
Signup Bonus
No
Registered users
20,000
Total funds invested
EUR 36 Million
Default rate
Undisclosed
Regulating entity
Comisión Nacional del Mercado de Valores
Buyback guarantee
Secondary market
Payment methods
MangoPay
Withdrawal methods
MangoPay
In this detailed review, P2PIncome's financial experts assess EvenFi.com, an Italian crowdfunding platform that emphasizes social impact in addition to profits and gains.
Verdict
EvenFi is a superb peer-to-peer platform and P2PIncome's financial experts highly recommend is for all forms of p2p investment. If you're trying to get your film financed, take a good look at EvenFi. You might be thrilled with the results.