One and done: Funding a business with one large customer

Description

Abstract: When lending to a small company that earns the lion’s share of its revenue from a single source, the primary concern is how to assess the likelihood that the borrower will retain that “key” customer. This article offers several questions lenders can ask to help evaluate a loan application from a business that earns much, if not all, of its revenue from one large customer. A sidebar suggests some questions to ask supply chain partners and end users.