Prepare for lenders and investors

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue getting ready for a raise or a new facility.

The quick answer

Lenders want coverage ratios, collateral quality, cash flow control, and steady reporting. Investors want a clear market, unit economics, repeatable growth, a plan to reach the next value step, and a team that can deliver. Both groups want clean books, low customer concentration risk, and a simple plan to manage cash.

The method in eight steps

Clean the books
Accruals, revenue recognition, inventory, and aging schedules current. Close calendar published.
Build the lender view
Coverage ratios, borrowing base quality, covenants with headroom, thirteen week cash view, and controls on billing and collections.
Build the investor view
Market size and focus, ideal customer profile, unit economics, repeatable acquisition channels, and a clear plan to the next value step.
Prepare the team story
Stage fit experience, leadership gaps and hiring plan, and how the founder stays close to customers without bottlenecks.
Reduce concentration risk
Show steps to diversify top customers and suppliers. Add contract terms that protect cash such as deposits and milestones.
Publish the reporting rhythm
Monthly pack with income statement, balance sheet, cash flow, margin bridge, and pipeline. Quarterly board pack with trends and scenarios.
Collect proof
Win rates by segment, case notes with numbers, testimonials, and references ready to speak.
Run a mock review
Invite two outside operators to challenge the pack. Fix gaps before you share it.

Example

A company building a new facility prepared a lender pack with coverage headroom and a thirteen week cash view. They added an investor pack with unit economics and a focused channel plan. Both groups moved faster because the story and the numbers matched.

Pitfalls and fixes

Mixed stories between lender and investor decks. Keep one set of truths.
Weak unit economics. Run the unit model before you pitch.
Reporting that changes every month. Fix the layout and keep it steady.

Checklist

Clean books and close calendar
Lender pack with headroom view
Investor pack with unit economics
Team story and hiring plan
Reporting rhythm set
Outside review done