Apply for Funding

Applications for all 3 funding functions follow the below process:

FOR SECURED LENDING:

After contacting us, an application is initiated by the Producer filling out an initial Eligibility Questionnaire, available upon request.

Precision Theatre Investments will confirm:

The Producer/production company meets the legal requirements for TTR and borrowing
The Producer has the experience and competence to deliver the proposed production
Projected project viability and estimated TTR payment based on a standardised budget template completed by the Producer
The Producer has other financing secured to ensure the production can go ahead

Once all these eligibility requirements are met, the Producer’s budget and expenditure will be scrutinised by Precision's accountants to verify expected TTR. More detailed information and actual expenditure will allow for a higher proportion of the TTR (up to 90%) to be lent against - that is, the later in a production process, the larger the loan can be as there will be greater certainty over the TTR figure.

Where there are factors that may lead to HMRC questioning the TTR submission (such as for international productions or excessive related-party transactions), a lower portion of TTR will be lent against and/or a higher fee charged to mitigate such risks or delays.

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4. FOR MEZZANINE LENDING:

Based on Producer information, Precision will value the advances, bonds, deposits, and reserves that will be returned if the production covers its running costs to determine the loan value. If the production is on-sale, the box office advance can be used as a basis for a higher loan amount.

Precision will adjust the Producer’s budget based on data for likely overspends derived from previous performance data.

Comparable production data and macro-factors, such as time of year, will be used to determine the likelihood that box office revenue meets or exceeds running costs.

Precision will generate the likelihood of income repaying the loan plus interest using the data above. Provided this likelihood is higher than 80%, the mezzanine loan will be granted.

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8. FOR EQUITY INVESTMENT:

For Equity investments, the same procedure will be adopted, with an additional step to be undertaken:

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Comparable show data will be used to create 5 to 10 possible scenarios for the production, from best to worst, each with a probability assigned. These scenarios will consider box office outcomes and other income streams. For a new musical, there might be a best-case scenario involving income streams from future productions and licensing for many years, that could be assigned a 1% probability. The probabilities will be multiplied by the net annualised returns for each outcome to arrive at the Expected Return. This must be higher than 15% on an annualised basis for an Equity investment to be made.

Image credit: Jim Cox (RIDE US 2024)