What is Customer Concentration Clause?
Definition
Language addressing the percentage of revenue from top customers and the indemnification consequences if a concentrated customer leaves. SBA lenders flag any customer over 20% and may disqualify loans where one customer is 50% or more.
Frequently asked questions
What is Customer Concentration Clause?
Language addressing the percentage of revenue from top customers and the indemnification consequences if a concentrated customer leaves. SBA lenders flag any customer over 20% and may disqualify loans where one customer is 50% or more.
Why does customer concentration clause matter in a contract?
Risk level: High. One of the top reasons SBA-backed acquisitions blow up post-close. Inkvex flags customer concentration clause clauses during analysis, explains the risk in plain English, and suggests negotiation language to protect your interests.
How does Inkvex analyze customer concentration clause clauses?
Inkvex scans your contract for customer concentration clause-related clauses, flags risks in plain English, quotes the exact language from your document, and cites jurisdiction-specific laws that may affect enforceability. Upload any contract at inkvex.app for a free analysis.
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