A single anchor client can look like security and behave like a liability. When most of your revenue rests on one relationship, their problems become yours overnight.
The risk of concentration
If one customer is the bulk of your turnover, a late payment, a squeezed budget or a lost contract from them can tip the whole company into difficulty. The dependence also weakens your negotiating hand.
Reduce it over time
Deliberately win smaller clients to dilute the concentration. Even modest diversification means no single loss is fatal. Treat it as a strategic priority, not an afterthought.
Manage it in the meantime
While the dependence exists, keep a bigger cash buffer, watch that client's own health, and tighten payment terms. If they wobble, a short bridge plus fast action on new business can carry you through.
If an anchor client's late payment causes a gap, a short arrangement can bridge it.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: A big customer has gone into administration and owes us, What a late-paying customer means for your loan payments, Building a recovery plan after a difficult period.