It is a quick boost to cash flow (assuming that the Factor’s conditions can be met)
Some customers take Factors more seriously and pay quicker (also, the reverse is true)
Non-recourse Factoring can protect against bad debts.
Factors will credit check your customers which will help reduce bad-debts.
Some Factors will withhold the VAT amount and transfer to you at the end of the VAT quarter, which saves you having to worry about putting it aside.
Disadvantages of Factoring
Queries with sales invoices can be slower / more bureaucratic to deal with.
It may reduce the scope for other borrowing, since you would already have effectively borrowed against the financial asset of your sales ledger debt.
Factors will not fund or may restrict funding against poor quality customers.
Leaving a Factoring arrangement means that you will have to repay off any money that you have withdrawn against your sales invoices (even if your customer has not paid)
You have no direct control over your credit control and some customers will prefer to deal with you directly.
Factoring is not cheap. The usual financial costs are the Factoring Fees and the Discount Fees.