The practical answer
They may consider both, alongside cash flow, bank conduct, existing debt and the proposed asset.
High turnover does not necessarily leave enough money for repayments after wages, suppliers, tax and other costs. Provide current figures and explain working-capital timing as well as annual results.
For a major purchase, show the combined payments under existing and proposed facilities. A realistic forecast should include weaker months and delayed receipts rather than treating sales as immediately available cash.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: New-start asset finance →