Receivables Concentration Risk

Receivables Concentration Risk is the exposure an agency carries when one invoicing or payment platform holds the entire path from tracked time to cleared funds. The category description names this directly: the risk is over-reliance on a single platform that may not scale with agency complexity or integrate with existing project management tools. Concentration shows up in three places at once. A gateway outage stalls every client payment on the same afternoon. A pricing change or feature sunset forces a migration mid-quarter, and historical invoice data has to be reconciled by hand. A single processor holds enough of the agency's monthly retainer volume that a frozen account becomes a cash flow event, not an inconvenience. The framework asks a simple question per platform: what percentage of monthly collected revenue would stop moving if this tool went dark for 72 hours? Anything above roughly 40 percent warrants a tested secondary path, even if it sits dormant.