Glossary · Reading the business
In short
This is the risk that a large portion of a business's revenue comes from a single customer or a small group of customers. Losing one major customer could severely impact the business's cash flow.
Lenders will flag this during underwriting, especially if one customer accounts for over 15-20% of revenue. You need to understand why this concentration exists and have a clear plan to diversify the customer base or demonstrate the stability of key relationships. High concentration can make a deal harder to finance.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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