Winning a major account can change a company's growth prospects. It can also make cash flow more dependent on one customer's payment decisions. When seeking financing, management should explain both sides of that relationship. Trade credit insurer Allianz Trade identifies concentration in a small number of customers as a source of receivables and cash flow risk. Customer concentration can also be part of an ABL lender's review. There is no universal acceptable percentage. Mea

A business may have a $2 million asset based credit commitment and still be unable to draw $2 million. Before building a purchasing plan around a facility, management needs to understand how availability is calculated. Wells Fargo explains that an asset based facility uses collateral values and advance rates to determine borrowing capacity. The OCC also describes eligibility criteria, reserves and monitoring as important features of these facilities. The specific loan agreeme