IFCIC: how to finance a cultural or creative business?

IFCIC's role

The Institut pour le financement du cinéma et des industries culturelles (Institute for the Financing of Cinema and the Cultural Industries) is a specialized institution that facilitates access to credit for cultural and creative businesses and associations. Its expertise enables banks to assess activities whose assets may be intangible, such as the production of works, catalogs, artistic projects or rights. IFCIC acts as a complement to sector-specific grants, own contributions and bank financing.

The two main tools

IFCIC mainly offers a bank guarantee and loans. The guarantee covers part of the bank's risk and can facilitate the granting of credit; it is not a sum paid directly to the business. The loan constitutes a debt to be repaid and can be used alongside bank financing, notably for projects requiring stronger support.

Guarantee for cultural and creative businesses

The general guarantee is aimed at businesses and associations in many sectors: cinema and audiovisual, video games, live performance, music, fashion, press, bookselling, publishing, art galleries, design, arts and crafts, theater, museums, heritage, and visual or digital arts. The published base rate is 50%, with a possible increase to 70% for certain loans up to €300,000 and for certain takeover transactions up to €1.5 million, within the outstanding-balance limits set by IFCIC.

Cinema and audiovisual guarantee

For independent European film and audiovisual production companies, IFCIC has a specific mechanism whose rate depends on the purpose of the loan. The directory indicates 70% for the acquisition of rights and development, 55% for preparation and production of works, and 50% for cash flow.

Loan for cultural and creative businesses

The IFCIC loan can support development projects, particularly those involving intangible investments. It is unsecured from the borrower under the published general terms; its term varies according to the need, from 12 months to 10 years, with a fixed rate and, depending on the project, a possible capital repayment grace period. The amount is determined case by case. Sole proprietorships are not eligible for this general product.

What needs can be financed?

Needs may concern the production of works, development and structuring, tangible or intangible investments, working capital requirements, cash flow, or the takeover or transfer of a business. The instrument to be used depends on the purpose of the loan, the business model, the level of activity, expected revenue and other resources already mobilized.

How to prepare an application?

Define the need and its timeline, prepare the latest accounts, the forecast budget, the cash flow plan, the financing plan, the contracts or expected revenue, and the contributions already secured. Discuss with your bank and contact IFCIC to check whether the guarantee, the loan, or a combination of the two is appropriate. Check the fees, term, repayment conditions and the share of the loan that may be guaranteed.

FAQ

Does IFCIC pay out grants? Its main tools are the bank guarantee and loans, which are not free grants. Is the guarantee paid to the business? No, it covers part of the bank's risk. Can associations apply? Yes, cultural and creative associations may be eligible depending on the scheme. Are sole proprietorships eligible for the general loan? The official loan page states that they are excluded. What is a loan's term? It can range from 12 months to 10 years depending on the purpose of the financing.

Official sources

• The IFCIC guarantee — IFCIC
• IFCIC loans — IFCIC
• Cinema and audiovisual — IFCIC
• Live performance — IFCIC
• Music — IFCIC
• Financing the production of cultural and creative businesses — IFCIC
• Financing the takeover of cultural and creative businesses — IFCIC