Getting a line of credit with a regular bank instead of factoring might not always be the best growth strategy. If your company is a start-up that is growing quickly there is a very good chance that the credit limit that the bank is offering could ultimately hinder your growth. This usually happens when business owners are completely unaware of the opportunity to raise capital through financing receivables.
Using the line of credit, when you run up to the credit limit you have no other capital options. Unless you can take a hit to your cash flow and payoff the line, you now have limited access to additional capital. Many owners are under the mistaken impression that they can have bank financing and factoring going on at the same time. Except in rare cases this is impossible.
When factoring accounts receivable there generally is no top credit limit. As long as you have additional invoices, you can keep financing. This allows your company to grow and the capital availability to grow in a corresponding manner.