Customer Concentration

The share of revenue that comes from a small number of customers — a credit, valuation, and diligence issue.

Last updated September 5, 2026

If one or a few accounts make up a large percentage of sales, losing one can erase the cash flow that supported the price. Lenders and QoE reports flag concentration and ask whether contracts, pricing, or personal relationships explain it. Diversified retail and restaurant traffic is a different pattern than a B2B shop with three contractors. There is no single “safe” percentage; context and switching costs matter.

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