All due diligence starts with historical financials. The lender wants to make sure the company has spent its money wisely and can establish a burn rate trend.Second, lenders want to see future projections. Projections or a Financial Model allow the lender to pinpoint the startup’s cash out date, recognize revenue inflection points, and model out how long the cash infusion will last the company.Lenders also want to see the cap table so they can see the round prices, especially if the lender is pricing the warrant based on a recent common stock valuation. Understanding the ownership breakdown and which VC’s own how much is important as well. Lenders also like to see the 409A valuation.Lenders will need an investor presentation as well so they understand the company’s technology, go to market strategy and key performance indicators (KPI’s).The credit committee will evaluate all these data points, underwrite the deal, and give the startup a term sheet!