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Cash Flow Facility
If You are Successful

Successful applicants will be required to enter into a Cash Flow Facility Loan Agreement with Film Victoria which sets out the terms and conditions of the loan and security agreements which secure repayment of the loan. The key terms of Film Victoria's loan and security agreements are set out below.

Please allow at least 8 - 12 weeks for contracting.

General terms for all loans include;

  1. Film Victoria administrative fee
    An annual administration and legal fee is payable, equal to 3% of the total loan amount and capped at a maximum of $45,000 per annum per loan, calculated monthly and payable in monthly instalments for the period of the loan.

  2. Film Victoria legal fee
    A one off legal fee is payable per loan and is calculated thus:

    Loan Amount   Legal fee
    < or = $500,000  $10,000
    >$500,000 - $1M $15,000
    > or = $1M $20,000

    The legal fee is added to the first invoice for fees and interest.

  3. Interest arrangements
    Interest on Cash Flow Loans is:

    1. Charged at the Reserve Bank of Australia Official cash rate plus a 5% margin;
    2. Fixed on the day of execution of loan agreement for the duration of the loan; and
    3. Calculated daily on the amount outstanding and payable at the end of each calendar month.

    Film Victoria will issue an invoice for fees and interest monthly, on strict 7 day payment terms.

    Penalty interest on overdue amounts will be calculated daily at the Statutory Penalty Interest Rate applicable from the date the overdue payment was due.

  4. Insurance
    Film Victoria generally requires Producers to take out and budget for the following insurances where applicable:

    1. Workers compensation insurance
    2. Completion guarantee for successful applicants of Cash Flow Facility for Distribution Guarantees or Licence Fees or Completion guarantee, including a quantified minimum QAPE spend guarantee for Cash Flow Facility for Producer Offset recipients
    3. Public liability of at least $10 million
    4. Film Production Insurance (FPI)
    5. Negative all risks insurance
    6. Multi-risk insurance
    7. Errors and Omissions insurance (E&O)
    8. Any other insurance that may be deemed necessary

    In the case of digital media projects, an indication of proposed planned methods for data protection and retrieval will be required.

  5. Credit
    Film Victoria will receive a credit: "PRODUCED WITH THE ASSISTANCE OF FILM VICTORIA" followed by the Film Victoria logo as a single full frame credit at the end of the Project (alternatively at the end of each episode) and in all publicity material issued about the project.

    Additional terms include;


Cash Flow Facility for Producer Offset Reporting

  1. Repayment to Film Victoria for Producer Offset Cash Flow
    Film Victoria's loan agreement will include a repayment date for the loan, which will have regard to production schedule, post production schedule, completion date, allowance for slippage, date for lodgement of tax return and likely date of ATO payment of the Offset.

    The applicant will be liable for the repayment of the loan in full. If there is any shortfall in repayment to Film Victoria, the applicant will be required to pay the amount of any shortfall to Film Victoria. In certain circumstances, Film Victoria may require a parent or associated company of the applicant to be a party to the loan agreement and/or to guarantee the repayment of the loan.

  2. Reporting
    Unless otherwise agreed by Film Victoria, recipients of a Producer Offset loan must meet the following reporting requirements:

    1. QAPE reports weekly in pre-production and production and fortnightly in post production;
    2. cost reports accompanied by trial balance and statement of investor funds weekly in preproduction and production and fortnightly in post production;
    3. evidence of remittance of production entity tax obligations (ATO Integrated Account Statement and Business Activity Statement reports) to the ATO monthly and quarterly as applicable; and
    4. QAPE totals at the scheduled drawdown milestones.

  3. Budget, QAPE and drawdown

    1. The applicant will undertake:
      1. Not to vary the non-QAPE expenditure without prior written approval from Film Victoria;
      2. Not to vary any Below The Line budget item by more than 10% without prior written approval from Film Victoria;
      3. Not to vary any Above The Line budget item without prior written approval from Film Victoria; and
      4. To quarantine an agreed amount of contingency that is recognised as non-QAPE expenditure.
    2. The applicant shall:
      1. appoint a registered tax agent to lodge its tax return and receive the refund cheque; and
      2. provide a written direction to the Tax Agent to pay the full amount of the Producer Offset into the Producer Offset Refund Account as set out in the Loan Agreement. The direction cannot be varied without the written agreement of an authorised representative of Film Victoria.
    3. Film Victoria will determine the frequency of draw downs of the loan. Film Victoria can provide draw downs as frequently as monthly.
    4. Prior to financial close, Film Victoria may require an updated QAPE Opinion where budgets and/or QAPE amounts vary significantly from the amounts estimated at application stage.
  4. Other
    1. The applicant shall notify Film Victoria when:
      1. the auditor's statement on the final audit has been received by the applicant (and provide a copy to Film Victoria)
      2. the Final certificate has been received from Screen Australia (and provide a copy to Film Victoria);
      3. the Tax return in respect of the Producer Offset has been lodged; and
      4. the Producer Offset refund has been received and banked by the Tax Agent.
    2. The applicant shall establish a Producer Offset Refund Account for the sole purpose of receiving the Offset Refund.
    3. The Producer Offset refund must be used to repay amounts outstanding on the Film Victoria loan. The refund cannot be used for any other purpose until Film Victoria's loan is repaid in full.
    4. The applicant must consult with Film Victoria regarding any changes to the key production personnel.

  5. Security
    Film Victoria shall secure the loan with:

    1. a registered charge over all of the applicant's right, title and interest (legal or equitable), both present and future, to and in respect of:
      1. payment of the Producer Offset Refund (fixed); and
      2. all other assets of the applicant (floating);
    2. a registered charge over all of the applicant's and/or Production Company's right, title and interest (legal or equitable), both present and future, to and in respect of payment of gross receipts;
    3. a Deed of Guarantee and Indemnity from the Production Company in respect of the applicant's performance of all of its obligations under the loan agreement;
    4. a Power of Attorney, granted by the applicant, pursuant to which Film Victoria may act as the applicant's attorney if there is an event of default under the Loan Agreement; and
    5. an irrevocable direction to the bank, enabling Film Victoria to appoint signatories to the Producer Offset Refund Account at its discretion.

      Film Victoria reserves its right to require additional security for the loan.

      Any breach of Film Victoria's terms and conditions will constitute an event of default.

Cash Flow Facility for Distribution Guarantees or Licence Fees

  1. Conditions Precedent

    Film Victoria will not advance the loan to the applicant until it is satisfied to the terms of and has received executed copies of:

    1. The production investment agreement (PIA) between the applicant and the investors;
    2. The distribution agreement between the applicant and the distributor/sales agent or broadcaster or software development/licensing agreement between the publisher and the developer;
    3. All completion guarantee documents for the project between the applicant and the investors; and
    4. All chain of title documents relating to the project.

  2. Reporting

    Film Victoria will require regular cost reports in keeping with the equity investor requirements on the project.

  3. Repayment of Film Victoria's Cash Flow Loan

    A Cash Flow Loan in respect of a Distribution Guarantee/Licence Fee will be repayable in full from the distributor, sales agent, broadcaster or publisher on dates specified in the Loan Agreement.

    The applicant is liable for the repayment of the Cash Flow loan in full. If the amount received from the distributor, sales agent, broadcaster or publisher is insufficient to meet the repayment amount to Film Victoria, regardless of whether the shortfall is as a result of currency fluctuations, deduction of withholding tax or non-payment of a distribution guarantee/advance, the applicant will be required to pay the amount of any shortfall to Film Victoria.

  4. Australian currency and foreign exchange fluctuations

    All references in the loan agreement will be in Australian dollars. In the event that the amount received from distribution guarantee or licence is insufficient to meet the repayment as a result of currency fluctuations, the applicant is liable for the shortfall.

  5. Security for Cash Flowing Distribution Guarantees/Licences

    Film Victoria will require the applicant to charge the distribution or publisher guarantee or the licence fee in favour of Film Victoria.

    The charge must be a fixed charge, first in point of security and cannot be removed until the applicant has made full repayment of the advance and related sums.

    The applicant must provide an irrevocable direction to the distributor, broadcaster, sales agent or publisher directing them to pay the specified tranche of the distribution guarantee or licence fee to Film Victoria on a specified date. Film Victoria requires a letter of acknowledgement (in a form and substance approved by Film Victoria) from the distributor, broadcaster, sales agent or publisher acknowledging that Film Victoria is providing the advance and agreeing to pay the specified tranche of the distribution guarantee or licence fee directly to Film Victoria.

    In certain circumstances, Film Victoria may require a parent or associated company of the applicant to be a party to the Cash Flow Facility loan agreement and/or to guarantee the repayment of the Cash Flow Facility loan.

    Film Victoria reserves the right to require additional security for Cash Flow Loans.

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