With the Gatwick Northern Runway expansion moving forward and continued investment in the Manor Royal BID, lenders are looking for resilient local firms. A clean, adjusted EBITDA proves your business is "Gatwick Ready" - capable of scaling as regional demand surges.

The 2026 Landscape: A Perfect Storm for Tenants

As we move through 2026, we are seeing a specific trend: Sussex-based landlords are increasingly disposing of commercial units by offering first refusal to existing tenants.

For a business owner, this is a massive opportunity to move from tenant to owner. However, seizing that opportunity requires a firm grasp of your EBITDA to secure the necessary commercial lending.

What Exactly is EBITDA?

What is EBITDA? In simple terms, EBITDA is a proxy for the cash profit your business generates purely from its core operations.

By stripping out financing costs (Interest), government obligations (Taxes), and accounting conventions (Depreciation/Amortisation), it reveals your "pure" operational profitability. 

For Manor Royal’s logistics, tech, and manufacturing firms, this is vital because it ignores the heavy "accounting noise" of expensive machinery or fleet upgrades.

"In a high-intensity hub like the Gatwick Diamond, EBITDA is the ultimate equaliser. It shows lenders the raw operational power of a business. In Manor Royal, a strong EBITDA isn’t just a number—it’s a signal that you have the muscle to scale alongside one of the UK’s most productive economic zones."

— David Farmer, Lime Finance

How Lenders Use EBITDA to Judge Your Business

Lenders and private equity investors use this metric for two primary reasons: Capacity and Covenants.

1. Assessing Debt Service Capacity

Lenders want to know if you can actually afford your loan. They use the Debt Service Coverage Ratio (DSCR):

DSCR = Adjusted EBITDA Total Annual Debt Service

A ratio of 1.25x or higher is generally considered healthy. A strong EBITDA signals lower risk, which often translates to better interest rates and larger loan amounts.

2. Setting Financial Covenants

Many loan agreements include "tripwires" called covenants. The most common is the Leverage Ratio:

Leverage Ratio = Total Debt Adjusted EBITDA

If your EBITDA drops and this ratio spikes above the agreed limit (e.g., 3.5x), your business could be in technical default. In an era where AI is increasingly used for automated credit monitoring, staying ahead of these numbers is more important than ever to protect your personal guarantees.

If you have borrowing, particularly from a high street bank, then there will likely be a covenant similar to this, especially with commercial mortgages. If you’re not sure then ping a copy of the loan agreement and we can let you know.

Calculating Your Numbers

While there are complex ways to find this figure, most SMEs use the Bottom-Up Method (The Add-Back) because it utilises the standard annual accounts:

- Take Net Income (Net Profit)

Then add back:

- Interest

- Taxes

- Depreciation

- Amortisation

= EBITDA

Making the Path Smoother

You don't need to be an accountant to succeed, but you do need to understand how lenders view your world. At Lime Finance Solutions, we help Gatwick Diamond businesses translate their operational success into "Lender Ready" data.

Whether you are looking to purchase your premises in Manor Royal or fund a major expansion, we assess your affordability before the application even hits a lender's desk. This means a better deal and more lenders wanting your business, good eh?

Is your business "Gatwick Ready"? Contact Lime Finance Solutions today to review your EBITDA and explore your funding options, we’re really friendly and happy to help.