Can I borrow if most of my revenue comes from one customer?
Yes, though concentration is the thing credit teams trim a deal over rather than decline it outright. If a single customer makes up most of your turnover, the lender is really assessing that customer as much as you. The strength of the contract behind the relationship usually decides how much difference it makes. A handshake arrangement that either side can end at short notice is treated very differently from a signed multi year agreement with a large corporate.
Why concentration worries lenders
The maths is simple enough. Lose that customer and most of the revenue behind the repayments goes with it, often before you can replace it. Lenders have seen it happen, particularly in labour hire, transport and contract manufacturing where one head contractor can carry a whole business. Invoice finance facilities handle this openly through a debtor concentration limit, which caps how much of the funding can sit against any single customer. Term lenders do the same thing less visibly, by trimming what they will advance.
What strengthens the application
Evidence beats reassurance. A long written contract helps. So does a clean payment history and a customer with a strong credit profile of its own. Showing the relationship has survived several years rather than arriving last quarter counts for something too. If you are actively winning other work, put the pipeline in front of the lender. Where the concentration cannot be argued away, a secured facility or a smaller loan amount is often the practical path. We would rather tell you the exposure looks too high than watch a deal fall over at credit.
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Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.