Discuss Customer Concentration With Context

When one customer represents a large share of revenue, an owner may worry that a commercial banker sees only a risk label. A useful conversation begins with the operating story. Ask how long the relationship has existed, how invoices are paid, what contract terms apply, and whether the concentration is growing or declining. These facts help the appropriate review team understand the business without the banker making an underwriting conclusion.

Harbor Fabrication receives nearly half its revenue from one manufacturer. The owner says the manufacturer is reliable, but payment cycles have stretched this quarter. Her banker asks for the current receivables aging, the contract renewal date, and the owner’s explanation of the changed timing. He does not say the relationship is safe or unsafe, and he does not suggest how the owner should diversify the business.

Separate preparation from a credit decision. Explain that verified financial information and the customer's operating context can be organized for the relevant review. A concise summary might note the concentration percentage, payment history, renewal timing, and responsible finance contact. Do not convert those facts into a promise about capacity, covenant treatment, or approval.

Close by assigning owners for the next items. The controller may provide the aging report, while the owner explains the contract status and the banker coordinates the review conversation. Ask what change would matter most to the business in the next sixty days. That question surfaces the decision behind the request without presuming a solution. Clear discovery helps the customer present a complete picture and keeps the banker's guidance factual when a single relationship has outsized importance.