+ immediate access to funds (within 48 hours) → addresses short term liquidity problems
+ don’t have to pay interest
+ can concentrate resources on other parts of the business by not having to chase accounts receivable
- must sell their accounts receivable at a discounted price → 90% of original value
May be perceived to your customers that you are in financial trouble
- You don’t control the methods used to collect the debt
- must return funds if third party business cannot access the account
- problems with cash flow
- more expensive than other forms of short-term finance
