Glossary · Funding
What is Concentration limit
Definition
A cap on how much of your funded ledger can sit with one client, commonly 25% to 35%. Invoices above the cap are funded at a lower rate or not at all.
Applies to: US and UK · Reviewed by James Doyle
In practice
New agencies usually win one anchor client first, which is exactly the shape funders limit. Winning the second and third client is a funding decision as much as a sales one.
Ask for the concentration position in writing before you sign, and re-check it before any large rollout — a single win can push you over the line and shrink available cash at the worst moment.
Related terms
Payroll funding
A facility that pays your contractors each week and is repaid when your client settles the invoice, removing the cash gap from the agency's balance sheet.
ReadInvoice factoring
Selling your unpaid invoices to a funder at a discount for immediate cash. The funder advances most of the invoice value, then pays the balance on settlement.
ReadAdvance rate
The percentage of an invoice a funder releases immediately. The remainder is held back as a reserve until the client pays.
Read
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