Sims & Aktar Limited currently offer 30 day credit terms to their customers. The company’s most recent monthly figures show that trade receivables have been outstanding on average for 67 days. The...

Sims & Aktar Limited currently offer 30 day credit terms to their customers. The company’s most recent monthly figures show that trade receivables have been outstanding on average for 67 days. The managing director has asked you, the management accountant, to prepare a summary of the advantages and disadvantages of using a factoring service to collect the company’s receivables. Prepare a brief paper providing the requested information.