Tillett Technologies is a manufacturer of high-end audio and video (AV) equipment.

The company, with no debt in its capital structure, has experienced rapid growth in revenues and improved profitability in recent years. About half of the company’s revenues come from subscription-based service agreements. The company’s assets consist mostly of inventory and property, plant, and equipment, representing its production facilities. Now, the company seeks to raise new capital to finance additional growth.

Describe two factors that would support Tillett being able to access debt capital at a reasonable cost to finance the additional growth. Justify your response.