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Production houses need funds to release movies. Invoice discounting lets them sell upcoming receivables from streaming services (OTT platforms) for upfront funds. It's like getting an advance on your paycheck!
Why is investing in alternate market is important?
Production houses need funds to release movies. Invoice discounting lets them sell upcoming receivables from streaming services (OTT platforms) for upfront funds. It's like getting an advance on your paycheck!
Frequently Asked Questions
Invoice discounting in the media and entertainment industry involves providing funds to production companies based on their anticipated future cash flows/invoices. In exchange, investors earn stable returns when the invoices are paid by a third party, typically a buyer of film or music rights (for example, Netflix, Hotstar, Prime).
The minimum investment amount required with BetterInvest is Rs. 50,000.
See how we select content producers to fund:
1. Onboarding: Strict criteria for production houses.
2. Evaluation: Detailed analysis of financial viability.
3. Discounting Eligibility: Discount 60-70% of contract value.
4. Verification: Proof of advance payment verified.
5. Security: Ensuring robust measures like Direct Collection Letters and Indemnity Agreements.
To minimize the risk of default, BetterInvest takes several precautions:
- Direct Agreements with Production Houses: These agreements ensure that revenue from the OTT platform or other rights buyers is transferred directly to the investors through an escrow account.
- Legal Security: BetterInvest collects Post-Dated Cheques and Indemnity Bonds from production houses to ensure compliance with financial obligations.
- Careful Curation: Each deal is rigorously vetted to ensure it meets BetterInvest's high standards, reducing the risk of failure.