Answer

What is the difference between turnover and profit?

Turnover is total sales; profit is what remains after costs — a business can have huge turnover and no profit, so profit and cash flow matter more.

2 min read

TurnoverTotal sales
ProfitAfter all costs
Cash flowWhat pays bills

How they differ

Turnover (revenue) is the total value of what you sell. Profit is what is left after paying for it all. High turnover with thin margins can leave little or no profit, which is why turnover alone tells you little. See reading your P&L.

What lenders weigh

Lenders note turnover but decide on cash flow and affordability. A leaner business with strong margins and steady cash can be a better borrower than a high-turnover one running on fumes.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Does high turnover mean a strong business?

Not on its own. A high-turnover business with thin margins may make little profit and hold little cash. Profit and cash flow are the better measures of health.

What matters most to a lender?

Cash flow and affordability, not turnover alone. A lender wants to see the business generates enough steady cash to service the debt comfortably.

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.