# What is concentration limit?

Source: https://launch-rec.com/glossary/concentration-limit. Category: Funding. Market: US and UK.

## 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.

## 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

- https://launch-rec.com/glossary/payroll-funding
- https://launch-rec.com/glossary/invoice-factoring
- https://launch-rec.com/glossary/advance-rate