If you are a sole trader, a lender will consider if there are any changes to your profit levels year on year. If your profits are up from the previous year, they may use this figure in their calculations. However, if your profits have gone down, the profit average will be lowered and this may change how much the lender is willing to offer. If profits declined by a significant amount such as 20%, some lenders may not be willing to lend at all. Other lenders may consider your recent accoutns rather than fluctuations in profits.