What is Concentration?

The maximum amount for which a factor will fund on a single customer in a client’s portfolio. This is often expressed as a percentage of the factoring volume for a given customer. Concentration is used as a risk management measure to ensure that a large majority of a client’s portfolio is not represented by a single customer.

Will Your Trucking Company Get Paid? Assessing Credit Risk

One of the many advantages of working with a specialized invoice factoring company for the trucking industry includes access to a large database of credit…