Financing for a $4-$5M EBITDA business with high customer concentration

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October 28, 2025

by a searcher from University of Mississippi in Chattanooga, TN, USA

I’m looking for financing recommendations for a high customer concentration (~70%) business that does $4-$5M in EBITDA. So far I’ve faced loans that only take into account the non-concentrated EBITDA. Any leads? Posting anonymously since the deal is live, but would love to reach out via DM if you comment that you are/know of a financing source for deals like this.
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Reply by a professional
from American University in Irvine, CA, USA
We had a client who was able to give more comfort to its lender that was concerned about a highly-concentrated situation by putting a longer-term contract in place between the company and its customer which guaranteed that the customer would continue to purchase product from the company provided that its negotiated requirements were met, and which also required a longer required notice period prior to termination or non-renewal of the agreement. If you'd like to discuss, feel free to DM me here.
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Reply by a searcher
from University of Wisconsin in Orange County, CA, USA
I would think you'd need to structure a very large earn-out/forgivable seller note for something like this.
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