How to Prepare for Grant Due Diligence (Checklists Included)
Grant due diligence is the stage where funders verify that your business, documents, finances, and operations are real, credible, and ready to receive funding.
Grant due diligence is the stage where funders verify that your business, documents, finances, and operations are real, credible, and ready to receive funding.
Many entrepreneurs lose grants not because their idea is bad, but because they are not prepared for due diligence.
This guide will walk you through:
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What due diligence really means
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The documents grant providers require
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What they check in your business
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Common red flags that make applicants fail
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A complete due diligence checklist you can use today
What Is Grant Due Diligence?
Due diligence is the background verification funders conduct before releasing money.
This verification helps funders confirm:
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Your business is real
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Your documents are authentic
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Your financials are credible
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You can manage the funds responsibly
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You meet all eligibility criteria
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You are not a fraud risk
Think of it as a final exam before they release funding.
Some funders that perform due diligence include:
⭐ Why Due Diligence Is So Important
Grant programs receive thousands of applications.
Due diligence helps them filter:
✔ Genuine entrepreneurs
✔ People with real businesses
✔ People with proper records
✘ Applicants who inflated numbers
✘ Fake businesses
✘ People who cannot prove what they wrote
Funders trust entrepreneurs who are:
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Organized
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Transparent
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Structured
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Documented
Due diligence is not meant to scare you.
It is meant to PROTECT the funder — and protect YOU from future issues.
Types of Grant Due Diligence
Due diligence is usually divided into four parts:
1. Legal Due Diligence
Confirms:
2. Financial Due Diligence
Checks:
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Bank statements
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Revenue claims
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Expenses
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Profitability
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Financial projections
3. Operational Due Diligence
Verifies:
4. Field / Physical Verification
Sometimes they will:
✔ Grant Due Diligence Checklist (Complete & Downloadable Style)
How to Prepare for Grant Due Diligence
Use this checklist before ANY grant interview or verification.
🧾 SECTION 1 — Personal & Identity Documents
Funders want to verify who you are.
Personal Checklist
✔ BVN
✔ NIN Slip
✔ Valid ID (Int’l Passport / Driver’s License / Voter’s Card)
✔ Passport photograph
✔ Utility bill (proof of address)
✔ Personal bank account details (if required)
🏢 SECTION 2 — Business Legitimacy Documents
Funders want to confirm that your business exists.
Business Verification Checklist
✔ CAC Certificate (BN / LTD)
✔ CAC Status Report
✔ Tax Identification Number (TIN)
✔ SCUML (if applicable)
✔ Business logo & brand identity
✔ Business address (physical or virtual office)
✔ Photos of your business location
✔ Photos of inventory/equipment
✔ Business signage
💰 SECTION 3 — Financial Documents
This is the most important area of due diligence.
Financial Checklist
✔ Last 6–12 months bank statements
✔ Record of sales (POS, receipts, online transfer evidence)
✔ Invoice history
✔ Cash flow statement
✔ Profit & loss statement
✔ Financial projections (1–3 years)
✔ Pricing model
✔ List of assets and liabilities
✔ Proof of business expenditure
✔ Loan history (if any)
📦 SECTION 4 — Operational Documents
Funders want to see how your business works.
Operations Checklist
✔ Business plan
✔ Pitch deck
✔ Staff list + roles
✔ Evidence of work done
✔ Customer list (or anonymized samples)
✔ Testimonials/reviews
✔ Website or social media pages
✔ Product catalogue / service menu
✔ Marketing strategy
✔ Photos of production or service delivery
🌱 SECTION 5 — Industry-Specific Documents
This depends on your sector.
Agriculture Businesses
✔ Farm location photo
✔ Lease agreement
✔ Farm input receipts
✔ Pictures of crops/livestock
Retail Businesses
✔ Inventory list
✔ Supplier receipts
✔ POS records
Manufacturing
✔ Equipment photos
✔ Production capacity
✔ Regulatory approvals
Service Businesses
✔ Portfolio
✔ Sample work
✔ Client agreements
🔍 SECTION 6 — Grant-Specific Requirements
Many grants will ask for extra documents such as:
✔ Business plan according to their template
✔ Statement of purpose
✔ 1-minute pitch video
✔ KYC documents
✔ Grant impact statement
✔ Budget plan (how you will spend the money)
✔ Future sustainability plan
🚫 Common Red Flags That Make Applicants Fail Due Diligence
Avoid these:
❌ Bank statements that don’t match your claim
❌ Fake or inconsistent CAC documents
❌ No proof of business activities
❌ Zero online presence
❌ No photos of your products/services
❌ Having no customers
❌ Inability to explain your financials
❌ Overinflated revenue claims
❌ Fake projections copied from the internet
❌ Unavailable phone number / wrong address
Grant providers prefer small but REAL businesses over big claims with no evidence.
How to Prepare for Grant Due Diligence
⭐ How to Pass Due Diligence With Confidence
Follow these steps:
1. Organize all documents in a dedicated folder
Digital folder + printed folder.
2. Be honest and consistent
Your application, bank statements, and verbal explanations must match.
3. Prepare a simple explanation of your numbers
Funders want clarity, not big English.
4. Have a clean business structure
Even if your business is small, structure matters.
5. Strengthen your online presence
Update your:
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Facebook page
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Instagram
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Google Business Profile
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Website
6. Practice your pitch
Be ready to explain:
🎁 FREE BONUS: Grant Due Diligence Master Checklist (Summary)
✔ Identity Documents
✔ Business Registration
✔ Financial Records
✔ Operations Evidence
✔ Photos & Videos
✔ Grant-Specific Requirements
✔ Online Presence
✔ Pitch Preparedness
Print this and review it before ANY grant interview.
AUTHOR BIO
Written by Dayo Adetiloye — Business Development Expert, Certified BDSP, Grant Strategist & Founder of Dayo Adetiloye Business Hub (DABH).
Dayo Adetiloye is a highly respected entrepreneur, business coach, and funding expert with over a decade of experience supporting SMEs across Nigeria and Africa. As a Certified Business Development Service Provider (BDSP) and founder of Dayo Adetiloye Business Hub, he has helped thousands of entrepreneurs access grants, loans, business plans, and capacity-building opportunities that grow sustainable businesses.
He is a partner with leading development organizations, including GIZ-SEDIN ICSS and the Ogun State Government, and has trained hundreds of entrepreneurs in business model development, investment readiness, marketing, and access-to-finance strategies. His high-impact work spans agribusiness, digital entrepreneurship, youth empowerment, and venture development.
Dayo is also a writer, speaker, and consultant known for breaking down complex funding processes into simple, practical steps that help business owners succeed. Through DABH, he provides business plans, feasibility studies, proposals, pitch decks, and grant application support to startups and SMEs.
When he’s not supporting entrepreneurs, Dayo develops youth empowerment programs, builds digital training systems, and leads transformative community development initiatives.
Connect with Dayo:
Website: www.dayoadetiloye.com
Instagram: @dayoadetiloye
LinkedIn: Dayo Adetiloye
Email: dayoadetiloye@gmail.com
Call/WhatsApp: +2348060779290
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