One of the truly beneficial elements of invoice factoring is the ability to grow and not be hampered by credit availability. Unlike working with a bank, which will only allow for credit based on historical profitability or sometimes major long term contracts by a borrower that has a proven ability to perform, accounts receivable factoring only relies on you continuing to produce accepted invoices from creditworthy customers. So in other words, the factoring line grows with you and has no top end limit.
When a business is in a steep growth curve it’s important to keep open the access to capital. Factoring allows for wildly fluctuating revenues, where banks try to find a plateau to hang their hat on which could crush your momentum if you hit the credit ceiling. Something to consider when shopping for outside financing.
Check out some additional links to financing HERE.