Network close to home. Present your film concept and funding needs to parents, best friends, siblings, neighbors, social network friends and co-workers. Just make sure that those nearest and dearest to you don't feel pressured into becoming a lending source. Explain that, unless your little film becomes the next Hollywood blockbluster, their return on investment will likely be the pride of seeing the finished product on the big screen -- or straight to DVD -- and knowing that they played a critical role in getting it there.
Investigate grants by searching online for sources. Grants are highly competitive, so be sure to apply carefully and accurately to programs that support the sort of film you're creating --- and apply to several such programs.
Consider social lending sites. Also known as peer-to-peer lending, these websites attract individuals who are willing to lend small sums for a decent rate of return. Rather than attempting to talk a banker into giving you a conventional loan, you must sell yourself to groups of your peers. If you get the sum you're looking for, you pay it back monthly, with interest, as you would any bank or credit union loan. This approach is best for borrowing small sums because of the higher interest rates. Be prepared to show prospective lenders your reel, a script or finished portions of your unfunded film to establish your credentials.
Seek investors. Schedule appointments with a lawyer and accountant to explore the possibility of setting up limited partnerships. Friends and family might also be a part of this group, but your pitch audience will be primarily attracted to bottom line results. Approach local doctors and dentists, your parents' country club friends and that classmate who just graduated magna cum laude and got a job on Wall Street. Online, visit nyfilmcenter.com for a list of funding sources for independent filmmakers. The possible downside is that the cost of setting up limited partnerships with investors could run a few thousand dollars.