Senior debt for independent film is a low-interest loan provided by a bank or financial institution, secured by “hard collateral” like verified tax credits and signed pre-sale contracts.

In 2026, banks typically cap senior debt at 80% of the collateral’s value, sitting in the first-recoupment position of the capital stack. While institutional lenders have grown cautious due to market fragmentation, they remain active for projects with bonded delivery and bankable distributors.

Let’s be clear—the old model of “closing on a handshake” is dead. Today’s lenders, from Comerica to specialty shops like Peachtree Group, aren’t looking at your script’s artistic merit. They’re looking at your data. With over 70% of independent films now relying on complex debt facilities to bridge the funding gap, understanding the “Senior” layer is the difference between a greenlight and a dead project.

The Vitrina Capital Stack Risk Ladder™

To navigate the 2026 financing environment, you’ve got to understand where everyone sits when the money starts flowing back. We call this the Risk Ladder™. The higher you go, the more you pay.

Senior debt sits at the very bottom of that ladder. It’s the “cheapest” capital because it’s the safest. If the film fails? The bank still gets paid from the tax rebate or the pre-sale guarantee. That’s why it’s called senior—everyone else waits in line behind the bank.

Why Banks are Cautious (The 80% Rule)

You’d think a signed contract is as good as gold, right? Not in 2026. Banks are increasingly worried about “counterparty risk”—the chance that a distributor might go bust before they pay your Minimum Guarantee (MG). Because of this, most senior debt lenders have moved to a strict 80% cap.

If you have a $1M tax rebate coming from the UK, the bank won’t lend you $1M. They’ll lend you $800,000. Why? To create a buffer for interest, fees, and the risk of a delayed audit. And—this is the big one—they’ll often require a completion bond to ensure the film actually gets finished. No delivery, no rebate, no bank repayment.

Phil Hunt explains the “Big Crunch” in film finance:

How to Trigger Senior Debt in 2026

Securing senior debt isn’t about a pitch—it’s about a package. Here’s what your production financing package needs to look like to get a bank to say “Yes”:

• Verified Tax Credits: A letter from the regional film commission (like the Saudi Film Commission or the CNC) confirming your project qualifies.
• Bankable Distributors: Contracts with “Tier 1” players (Netflix, Disney, A24). If your distributor is a new indie shop without a balance sheet, the bank will “haircut” the value or reject it entirely.
• Completion Bond: A commitment letter from a guarantor like Film Finances Inc.
• CAMA Agreement: A Collection Account Management Agreement ensures the bank is at the top of the waterfall.

Want to see who’s actually lending right now? Producers can explore 140+ vetted lenders on Vitrina, filtered by territory and budget range. It beats cold-calling banks that don’t understand the “soft money” game.

How Vitrina Streamlines Senior Debt Research

Finding a bank that “gets” film is a nightmare. Most local branches will look at a tax incentive rebate like it’s monopoly money. Vitrina’s platform connects you to the specialists who live in this world.

• Vetted Lender Database: Access 140+ active debt partners, from major banks to private credit shops.
• Supply Chain Intelligence: See which financiers recently backed projects in your genre or territory.
• Expert Matching: Skip the gatekeepers and reach decision-makers.

Frequently Asked Questions