Why Do Factoring Companies Worry About Concentration Risk?
If 60%+ of your invoices are to one customer and that customer goes bust, the provider faces a massive loss. Concentration limits (typically 25-40% per customer) spread this risk. Diversifying your customer base gets you better terms.
OM
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 9 April 2026