Space contract financeability check: will lenders accept this government contract and licence?

Is this space contract or licence financeable?

Answer fourteen questions about one government space contract and the licences it depends on, and see where each answer sits against what lenders usually look for, with the point to work on and a link to the key term behind it. Your answers stay in your browser. The first part is free; the rest unlocks with a free sign-up.

Randeep Bubbra | Lawyer | Making space financeable

1The contract and the customer

Who is the customer?ESA, NASA, the Space Force, the MOD, CNES or another agency, directlyWhat lenders look forGovernment credit risk: usually the strongest a lender will see.A prime contractor (we are a sub-contractor)Financeable with workThe credit risk is the prime's, and the agency's rights flow down.A government data or capacity purchase, alongside commercial customersFinanceable with workLenders like the anchor but test the commercial ramp-up separately.The key term behind this question

Is the work funded?Yes, committed for the period the financing relies onWhat lenders look forLenders can count it.Subject to annual budgets or ESA programme subscriptionsFinanceable with workLenders ask when the next budget or ESA ministerial decision falls.Not yet: the programme or phase is still to be fundedLikely diligence pointTreat it as pipeline, not revenue.The key term behind this question

How is the contract paid?Service payments once operating, or regular milestones already metWhat lenders look forPredictable cash flow.Development milestones still to be metFinanceable with workLenders model slippage: a missed milestone delays cash.Mostly on delivery or in-orbit acceptanceLikely diligence pointLenders need to fund the gap and take launch and in-orbit risk.The key term behind this question

Is this space contract or licence financeable?

1The contract and the customer

Unlock the full tool