Our Production Markup Policy

Fixed Exchange Rates for Euro, United States Dollar

Progressive Productions is a well-capitalised company that enjoys the benefits of a wide scope of banking services, has a conservative financial policy, and aims to generate advantages for its clients through financial stability.

One of the means of creating these advantages is a fixed exchange rate. In Hungary the national currency is the Hungarian Forint (HUF). We are aware of the fact that a small country’s even lesser-known currency can imply a major risk for our clients when planning the budget (especially because of the fluctuation of the exchange rates). Because of this, we calculate our budget in Hungarian Forint but convert it to Euro, US dollar from the very beginning, and lock the exchange rate of the Hungarian Forint and the other chosen currency when the budget is accepted. This way the invoice to our clients will be issued in one of the aforementioned three currencies, in which our client also has the possibility to pay so they never have to deal with Hungarian currency during these transactions. Therefore we free our clients from exchange rate risks that come from the fluctuation of the Hungarian Forint exchange rate.

By offering these financial services, we are amongst the top production companies on the European market as we are able to provide maximum financial security for our clients. These services do not come at extra cost for our clients because the production markup covers it all.

Our company is capable of providing all these with the help of a bank guarantee, meaning that our banking partner makes all the foreign currency that the budget of the project requires available for us, and exchanges it to Forints at the moment of entering into the contract. We can continually draw this amount from the bank after the arrival of the payment transfers.

VAT Crediting, Administration

The rate of the Value Added Tax in Hungary is amongst the highest ones in Europe (27%). This means that after every required service, 27% tax has to be paid additionally, which in accordance with the Hungarian and European laws, can later be reclaimed from the Hungarian government. However, in practice this would mean that we add 27% VAT to the invoice that our client can only reclaim through possibly months of legal procedures and administration.

Contrary to this practice, as we are a company that pays taxes in its own country, we can issue an invoice excluding the VAT. Thus, Progressive Productions will be charged with the VAT of the required services. We provide credit for this expense from our financial reserves and we also manage reclaiming it. We don’t charge any extra fee for this service because we believe that the production markup covers it completely.

Flexible Payment Conditions

When it comes to the payment schedules, we generally follow the established standards of production service industry. At the same time, for our returning clients, we are always open to making an exception and do not put them under the pressure of a payment schedule. We believe that they chose us to make sure that a few days of delay won’t hurt us as a company and won’t endanger the production. If requested, we can also make exceptions in cases of new clients as well, based on individual considerations and reasonable causes.

Accounting System

We work with the most up-to-date accounting system which makes it possible for us to constantly keep track of expenses and to notify our clients immediately if overspending appears anywhere. In order for this to be possible, we give every group of expense its own account number when we give our very first estimate, under which we precisely specify the particular costs that make up the given expense group.

During the course of the project we constantly administrate the actual expenses. The invoices that arrive later are also administered by the production accountant in his own accounting system, it is according to these same account numbers that we labeled the invoices within the budget.

This system enables us to create the most accurate reports of both the estimated and the actual costs and also to continuously create variance reports. But most importantly, we are able to make our budget management completely transparent to our clients thanks to this accounting system.