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In this episode of Inside Indies, John Cooke sits down with Fred Milstein, President and CEO of Media Guarantors, to discuss the critical role completion bonds play in independent filmmaking. Completion bonds provide a safety net for filmmakers, investors, lenders, and distributors, ensuring projects are delivered on time and on budget.
“Our obligation as a completion guarantor is to make sure the film is completed on time and on budget,” Milstein explains. Completion bonds guarantee that distributors receive films by their deadlines, and financiers have assurance that their investment is properly managed.
Milstein notes that the need for a bond often arises from the financiers themselves. “The request usually comes from your financier. They want the security of knowing that the film will be completed, certainly on budget, so that the money they’re putting in is enough to make the movie.” Additionally, projects with multiple financiers often require a neutral third party to monitor compliance, safeguarding all stakeholders.
Getting started with a completion bond is straightforward. Milstein says, “We require the same things that the producer’s going to have, which is a script, a budget, and a shooting schedule. And we’ll look at those documents even in draft form to get the process going.” Beyond that, the bond company reviews all key documentation, including cast agreements, finance agreements, and distribution deals, serving as a second set of eyes on the production.
During filming, the bond company monitors progress without being intrusive. “We try to be a week or two ahead in terms of projecting where the project is going and if we see things going a bit off track, we do get involved, but we do so with the producer. We do so in conjunction with the producer.” This partnership ensures that films are completed efficiently and within budget while maintaining creative integrity.
Completion bonds also offer investors an extra layer of protection. Milstein emphasizes, “Our obligation would be to repay all the investors. So that is an additional security that an investor or a financier has with respect to having a completion guarantee on the film.”
