Film Accounting Glossary
Drawdown
What is a drawdown?
Also called draw, funding tranche, or advance request.
A drawdown is a request that a financier or lender release the next installment of committed funds into the production account, supported by the cash flow schedule and the current cost report.
Drawdowns are usually tied to conditions: signed reports, a clean bank reconciliation, and evidence that the prior tranche was spent as represented. Missing a drawdown deadline is a purely administrative way to run out of cash on a fully financed picture.
Example
The show requests the third tranche of $1.6M, supported by the current cash flow and cost report. The financier's conditions include a signed bank reconciliation and evidence the prior $1.9M was spent as represented. Miss the notice period and a fully financed picture runs out of cash.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Requested by the producer and accountant against the funding agreement's schedule and conditions precedent.
Common mistake
Requesting late. Funders attach conditions and notice periods, so a fully financed picture can miss payroll because the paperwork was submitted two days short.
Related questions
- What is required to request a drawdown?
- Usually the current cost report and cash flow, a signed bank reconciliation, and evidence that the previous tranche was spent as represented.
- How often does a production draw down funds?
- Against a schedule agreed at closing, commonly in tranches tied to prep, start of photography, and post, with notice periods for each request.