Can I qualify for engineering finance if most of my revenue comes from one large client?

Short answer: yes — but it depends on the strength of your contract, the creditworthiness of that large client, and the mitigations you can offer lenders. Engineering firms with client concentration can and do obtain asset finance, invoice or contract funding and short-term working capital, but lenders will evaluate the dependency risk and price or structure facilities accordingly. To see what options match your situation, get a Free Eligibility Check and quick quotes here: Get Quote Now — Free Eligibility Check (90 seconds).

TL;DR — Short answer

Yes — engineering businesses where one large client supplies the majority of revenue can usually access finance, provided lenders can see predictable contract income, strong payment history from that client, adequate collateral (for asset finance) or direct assurance arrangements for invoice/contract finance. Lenders often require additional mitigants (security, guarantees, assignment clauses) and may increase pricing or shorten terms to reflect concentration risk. If you want tailored likelihoods and indicative terms, start a Free Eligibility Check now: Get Quote Now.

Why a single client matters to lenders

Lenders view customer concentration as a key operational risk. If one client supplies most of your turnover, losing that client can cause an immediate and material cashflow shock — potentially enough to breach lending covenants or make a facility unaffordable. Here are the main lender concerns:

• Dependency risk: the company’s revenues, margins and ability to service debt all hinge on the ongoing relationship with one buyer.
• Contract stability: whether the relationship is governed by a long-term contract, short spot-work arrangements or repeat purchase orders.
• Payment behaviour: delays, retentions, disputes or disputed quality claims can extend cash conversion cycles.
• Sector cyclicality: engineering sectors tied to one buyer or sector (e.g., automotive OEMs) may be sensitive to downturns.
• Concentration covenants: lenders may add covenants that trigger repayment or review if client revenue falls below a threshold.

For engineers, typical examples include long-term subcontracting for a single OEM, recurring maintenance contracts for one utility, or manufacturing components solely for one large purchaser — each scenario raises different questions for lenders about continuity and recoverability.

What lenders and brokers will check

Specialist lenders and brokers will run a focused checklist to assess the true risk of client concentration. Below are the typical checks and what matters most to each.

Contract evidence & length

• Is there a written contract? Lenders prefer long-term contracts with clear notice/termination clauses (eg. 12+ months). Verbal or ad hoc orders are riskier.
• Assignment rights and consent: lenders like to see clauses allowing assignment of invoices or rights to be paid directly or into escrow if necessary.

Payment performance & invoicing

• Historic days sales outstanding (DSO), frequency of retentions and frequency of disputes matter. Clean, predictable payment history reduces perceived risk.
• Does the client hold retentions or long acceptance periods? These extend working capital needs.

Business financials

• Management accounts, VAT returns, bank statements and profit margins. Lenders want to see stable or improving margins and consistent revenue recognition.
• Evidence of reasonable cash buffers or reserves helps.

Diversification & pipeline

• Is there a credible pipeline of new tenders or secondary clients? Even a clear 6–12 month backlog outside the main client eases lender concerns.
• Demonstrable efforts to win new business (tender submissions, leads) are positive.

Security & guarantees

• Lenders may request asset security (plant, machinery), fixed & floating charges, or director guarantees to compensate for concentration risk.
• Third-party guarantees or parent company support can materially improve offers.

Credit history & sector risk

• Director credit records, prior defaults, CCJs or insolvency events will be examined.
• Some lenders limit exposure to particular engineering niches perceived as higher risk.

Types of finance you can still access

Concentration changes how facilities are priced and structured, but you still have options. Common solutions for engineering firms include:

• Asset finance: equipment, plant and machinery are financed against the asset value. This is often available when you can offer the financed assets as security — terms depend on asset residual value and lender appetite.
• Invoice finance / selective invoice discounting: if the large client is financially strong and pays reliably, invoice finance can convert debtor balances into immediate cash. Some funders will lend against invoices to a single large, blue-chip debtor with direct debit/collection arrangements.
• Contract finance / contract funding: designed for long, predictable contracts; the lender assesses the contract and client to fund stages of work or milestone payments.
• Short-term working capital loans or overdrafts: available but often at higher cost if concentration risk is high.
• Bridging finance: fast but expensive — useful for immediate shortfalls while you diversify.

Note: when concentration is high lenders often apply risk-based pricing, higher fees, or shorter terms and tighter covenants.

How to improve your chance of approval

There are practical steps engineering firms can take to reduce perceived risk and secure better terms.

• Strengthen contracts: secure written contracts with longer notice periods, assignment clauses, and clear payment milestones. Lenders favour explicit contract terms over informal arrangements.
• Demonstrate client creditworthiness: provide audited accounts or a trade reference from the large client, showing their ability to pay on time.
• Show pipeline & diversification plans: evidence of new tenders, secondary clients, or a staged sales plan reassures lenders you’re reducing concentration over time.
• Offer security or guarantees: fixed asset security, partial personal guarantees, or a parent company guarantee will significantly improve offers.
• Improve cashflow operations: tighten invoicing cadence, chase retentions, and where possible negotiate staged payment or escrow arrangements with your client.
• Use a specialist broker: an experienced broker who understands engineering can present your case to the right lenders, explain mitigants and negotiate better pricing.

These steps both improve credit-worthiness and give brokers stronger arguments when presenting your file to lenders.

Application pathway & what to expect

Typical process and timelines:

1. Quick enquiry: complete the Free Eligibility Check — this is not an application and does not affect your credit file (Start your enquiry).
2. Document request: management accounts, contract(s) with the main client, VAT returns, bank statements and asset details.
3. Credit & client checks: lenders may review your main client’s accounts, payment history and may contact the client for confirmation (with your consent).
4. Indicative offer: within hours to days for smaller asset finance or invoice finance; larger facilities may take several weeks after due diligence.
5. Due diligence & completion: legal documentation, security registration and drawdown.

Typical timelines: asset finance and invoice facilities can complete in a few days to two weeks; contract or larger working capital facilities can take 2–6 weeks or longer depending on complexity.

Case examples

Example A — Subcontract engineer (asset finance)

An engineering subcontractor with 75% revenue from one OEM secured asset finance for new CNC machines. The lender accepted the equipment as primary security, reviewed the OEM contract for continuity and took a limited director guarantee. The facility funded 80% of the equipment cost and improved production capacity while keeping repayment terms aligned with cashflow.

Example B — Component manufacturer (invoice finance)

A components manufacturer with 80% of sales to a blue-chip client gained invoice finance by proving the client’s strong payment record and agreeing to collections via direct debit. The funder placed limits on concentrations but advanced funds quickly, turning invoices into working capital and reducing the working-capital pressure created by retentions.

Both examples show why matching to the right lender matters — specialist lenders and brokers understand how to weigh the main client’s creditworthiness against concentration risk.

Costs, terms and what to watch for

When client concentration is high expect:

• Higher pricing: risk premiums, facility fees and arrangement fees may be higher than for diversified businesses.
• Tighter covenants: covenant triggers tied to client revenue share, maximum debtor days, or minimum cash balances.
• Security requirements: debentures, fixed charges, or guarantees may be requested.
• Renewal & exit terms: watch early repayment penalties and renewal fees on short-term facilities.

Important: UK Business Loans does not provide finance itself and makes no guarantee of offers. Any finance offered will be made by a lender or broker and is subject to status, affordability and lender terms.

How UK Business Loans helps & next steps

UK Business Loans connects engineering firms with specialist lenders and brokers to find the most suitable finance solution for businesses where one client dominates revenue. We are an introducer — we don’t lend or give regulated financial advice. Our free Enquiry Form is a quick way to get matched with providers who understand engineering finance and client-concentration issues.

• It takes around 90 seconds to complete our enquiry.
• Submitting the form is not an application and does not affect your credit score.
• We’ll match your case to lenders/brokers likely to consider your situation and who can provide fast, no-obligation quotes.

Get a Free Eligibility Check — Start Your Enquiry (typical response in hours).

For further guidance on sector-specific funding, read about tailored engineering solutions such as our page on engineering business loans.

Frequently asked questions

Can I get asset finance if one client provides 80% of turnover?

Often yes. Asset finance is typically secured on the equipment being purchased, so lenders focus on the asset value and business cashflow. Demonstrating stable payments from your major client and offering reasonable security improves your chances.

Will an enquiry affect my credit score?

No. Completing our Enquiry Form does not affect your credit score. Lenders or brokers may perform credit checks later with your permission during formal application stages.

Do lenders treat a blue-chip client differently?

Yes. If the large client is a financially strong, reputable firm with reliable payment performance, many lenders will be more comfortable providing invoice or contract finance against that debtor.

What documents should I prepare before applying?

Recent management accounts, VAT returns, bank statements, the contract(s) with your main client, and details of assets you can offer as security are the usual requirements.

How long until I receive quotes?

Small asset or invoice finance enquiries can receive indicative quotes within hours. Full offers for larger facilities typically take days to weeks depending on due diligence.

About this article

UK Business Loans Content Team — updated 30 October 2025. This article is for guidance only. UK Business Loans does not lend or provide regulated advice; we introduce businesses to finance providers. Any finance offer will be made by the lender or broker and is subject to eligibility, status and lender terms. For full privacy and data handling details see our Privacy Policy and About Us pages.

Ready to check your eligibility? Start Your Free Quote — Free Eligibility Check (no obligation; from £10,000).

1. Can I get a business loan or engineering finance if one large client provides most of my revenue?
Yes — you can often access business loans, asset finance or invoice/contract funding even with client concentration, provided lenders see strong contract evidence, the client’s creditworthiness and mitigations such as assignment clauses or security.

2. What types of finance are best for engineering firms with a single dominant client?
Common options include asset finance, invoice finance (if the client is blue‑chip), contract funding and short‑term working capital, with availability and pricing depending on contract stability and client payment history.

3. Will submitting an enquiry via UK Business Loans affect my credit score?
No — completing the Free Eligibility Check or enquiry form is not a credit application and does not affect your credit score, though lenders may run checks later with your consent.

4. What documents should I prepare before applying for invoice, contract or asset finance?
Prepare recent management accounts, VAT returns, bank statements, the contract(s) with your main client and details of any assets or proposed security to speed up lender assessments.

5. How quickly can I expect quotes or funding for typical engineering finance needs?
Indicative quotes for small asset or invoice finance can arrive within hours, while full offers for larger or contract facilities usually take days to several weeks depending on due diligence.

6. Can I get invoice finance if 70–80% of my turnover is to a single blue‑chip client?
Yes — many invoice funders will lend against invoices to a single financially strong client if payment history is reliable and direct collection or assignment arrangements are possible.

7. Will lenders require security or personal guarantees if client concentration is high?
Often yes — lenders commonly ask for asset security, fixed and floating charges or director guarantees to mitigate the higher concentration risk.

8. How can I improve my eligibility and secure better terms with client concentration?
Strengthen written contracts (assignment and notice clauses), provide evidence of your client’s creditworthiness, show diversification plans or pipeline, and offer security or guarantees to reduce perceived risk.

9. Is UK Business Loans a lender and do you provide financial advice?
No — UK Business Loans is an introducer that matches you with FCA‑regulated brokers and lenders and does not lend money or provide regulated financial advice.

10. What loan amounts and facility types can UK Business Loans help me explore?
UK Business Loans can connect you with partners offering a wide range of finance from around £10,000 to multi‑million commercial facilities including business loans, asset finance, invoice finance and working capital solutions.