Those without any money pay for everything out of production fees, which is a particular form of semi-insane self-destructive behavior. Extraordinarily hard to do, yet always unrewarded, these companies pay for everything out of their fees, and if there is a problem with getting paid they are out of business.
But if they are financed by a large corporation, see for example Sony Imageworks, Digital Domain, the Secret Lab, WBIT, etc, they may gleefully dump millions, possibly hundreds of millions, down the toilet having nothing to show for it but a bunch of cold machines and hot people. Those lucky companies (not me, folks) can now proceed to try and make a profit paying back the interest and principle on those millions of dollars. You see, that money they spent turns out not to be a gift, it was a loan, and intended to be paid back. How could they have known? (1)
1. Now you are a vice president of another division at the company, only you are expected to make a profit with the money you are allowed to spend, whereas the idiots in visual effects, just *spend* the money and never make a profit, not a profit as it is defined in real business. Do you suppose that some ungrateful wretches at such a company might try to kill the stupid visual effects department that just loses money? What do you think?