- Check legal standing, cash flow, the milestone, supporting contracts and the people behind the project.
- Cross-check every document against the others; inconsistencies are the earliest red flag.
- Without collateral, diligence quality is the main safeguard, but it does not remove risk.
Due diligence is the process of checking facts before money changes hands. Investors who fund projects through a platform often rely on the platform's team to do it, but still need to know what should be checked so they can judge the quality of the diligence pack they receive.
1. Identity and legal standing of the company
- Deed of incorporation and latest amendments, with approval from the Ministry of Law and Human Rights.
- Business identification number (NIB), operating licences for the sector and tax ID (NPWP).
- Shareholder and management structure: who really controls the company.
2. Cash flow and financial history
Recent bank statements show whether the business really operates: consistent inflows, routine obligations being paid and patterns that match the story told. Financial statements and management accounts complete the picture. Cross-check the numbers against each other, because a mismatch is the earliest red flag.
3. The milestone being financed
Bridge financing is only as strong as the milestone beneath it. Ask: what exactly is the event being waited on, what is the evidence (contract, purchase order, invoice, permit in process), who pays or issues it, and what happens if it is delayed.
4. Supporting contracts and receivables
Ask for commercial evidence behind the milestone: contracts with customers, those customers' payment history, and a list of receivables and payables. A receivable from a customer who always pays on time is worth something very different from one owed by a customer who often delays.
5. The people behind the project
The background of owners and key people matters: experience in the sector, track record and openness in answering hard questions. A direct interview with management often reveals what documents cannot.
6. Verification on the ground
Documents say what is written; a site visit checks what is real. At Melton Bridge, every document is digitised and analysed with AI assistance to flag anomalies, followed by management interviews and a site visit. Details are on the How It Works page.
What about asset collateral?
Melton Bridge does not take asset collateral; assessment is fundamental, based on cash flow, milestone and people. That means the quality of diligence becomes the main safeguard, and investors need to understand the risk. More is in the risks of bridge financing and how they are mitigated and is bridge financing safe.
This checklist is general education and no guarantee that a project is risk-free. As a fund owner you are entitled to review the diligence pack before committing; start from the Fund Owners page.
Frequently asked questions
What is due diligence?
The process of checking facts about the business, its documents, cash flow and the people behind it before funds are deployed, so decisions rest on evidence rather than just a story.
Which documents matter most in diligence?
Bank statements, financial statements, legal documents, and contracts or receivable evidence that support the milestone. All of them need to be cross-checked against each other.
Does diligence guarantee a project is risk-free?
No. Diligence lowers the chance of problems but does not remove them. Risk still needs to be managed through diversification and a sensible placement size.
Ready to deploy capital?
Register as a fund owner, set your mandate, and review diligence packs on screened bridge transactions before you commit.
Educational content only, not financial advice. Returns are not guaranteed and capital may be lost.