Meaning Debtor concentration limit
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Debtor concentration limit


A set maximum percentage and/or value allocated to a Debtor typically managed via a specific funding limit. The concentration level is calculated based upon the Debtor balance divided by the value of the sales ledger. As an example a Debtor balance of £40k on a sales ledger of £100k would result in a 40% ledger concentration for the Debtor.
Source: lloydsbankcommercialfinance.co.uk




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