# Collection Account

Source: https://storiara.com/glossary/collection-account
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> A collection account is a dedicated account, run by an independent collection account manager (CAM), that receives all of a film's revenue from sales agents and distributors. The CAM pays that money out to lenders, investors, and profit participants in the order set by the collection account management agreement (CAMA), and sends everyone regular statements.

## How money moves through one

On THE LONG DRIVE, the [sales agent](https://storiara.com/glossary/sales-agent) licenses the film to a French distributor for a $160,000 minimum guarantee, with $40,000 due on signing and the rest on delivery. The distribution contract names the collection account as the payee, so the French distributor wires the money straight to the CAM instead of to the sales agent or the producer. The CAM logs the receipt, checks which deal it belongs to, and pays it out under the [waterfall](https://storiara.com/glossary/waterfall) in the CAMA.

Each quarter (or half year, once sales slow down), every party gets a statement showing receipts by territory, deductions by tier, and what each party has been paid to date.

## What a CAMA statement shows

A simplified statement after the first year:

| Line | This period | To date |
|---|---|---|
| Receipts: France MG | $120,000 | $160,000 |
| Receipts: Australia/NZ license | $45,000 | $45,000 |
| CAM fee | ($1,650) | ($2,050) |
| Sales agent commission | ($24,750) | ($30,750) |
| Sales agent expenses (cap $75,000) | ($10,000) | ($22,000) |
| Gap lender | ($128,600) | ($150,200) |
| Balance to equity | $0 | $0 |

The CAM fee here is assumed at 1 percent and the sales commission at 15 percent, for illustration. Equity investors can see from this exactly how far away their [recoupment](https://storiara.com/glossary/recoupment) is: the gap lender still has to be paid off before any money reaches them.

## Who signs the agreement

The CAMA is a multi-party contract. Signatories usually include the production company, the sales agent, the equity investors (or their representative), any gap or senior lender, the [completion guarantor](https://storiara.com/glossary/completion-guarantor) if the bond has recoupment rights, and often key talent whose backend is paid through the account. Getting all of them to agree on wording is slow, which is why the CAMA should start while the financing is still being put together.

## Common problems

The biggest is revenue that never reaches the account. A US streamer paying the producer directly, or a sales agent netting its commission before remitting, breaks the system. Every [distribution agreement](https://storiara.com/glossary/distribution-agreement) and the sales agency agreement should direct payment to the CAM.

The second is a waterfall in the CAMA that doesn't match the investor and loan documents. Your attorney should check the CAMA against every financing document, and your [production accountant](https://storiara.com/roles/production-accountant) should confirm that deferments and backend points listed in deal memos appear in it. For how the account fits with equity and debt, see [film financing](https://storiara.com/learn/film-financing) and [equity financing](https://storiara.com/glossary/equity-financing).

## Frequently asked questions

### Does a low-budget film need a collection account?

If there are several investors, a gap lender, or deferred profit participants, it's worth it, because everyone gets the same statements from a neutral party. A single-investor micro-budget film may skip it and have the production company's accountant report instead.

### Who are collection account managers?

Specialist companies such as Fintage House and Freeway Entertainment offer the service. Choose one that your lender and sales agent already accept, since the bank usually has to approve the CAM.

### How is a CAM paid?

Usually a setup fee plus a percentage of the money that passes through the account, taken off the top in the first tier of the waterfall. The rate is quoted per deal, so get quotes before closing financing.

### When should the CAMA be signed?

Ideally before or at the financing close, and certainly before the sales agent collects any money, so no receipts are paid out under a different arrangement.