Qualifying for a line of credit with a bank might not always be a great idea. If you have a young company that is growing quickly there is a very good chance that the credit limit that is offered could ultimately hinder your growth. This usually happens when business owners are completely unaware of the opportunity to raise capital through factoring receivables.
With the line of credit, when you run up to the credit limit you are done. 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.
For reference read this article.
When factoring accounts receivable there generally is no top limit. This allows your company to grow and the capital availability to grow in a corresponding manner.