2 min read
Definition
Operating profit is revenue minus the costs of running the business, before interest and tax. Also called EBIT, it isolates how profitable the core trading is, independent of how the business is financed.
Why it matters
Lenders build the cash figure for affordability from operating profit, adjusting for non-cash charges. It is where a DSCR calculation begins.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.