This would be helpful to Sports Direct if they are unable to generate enough cash to repay debts to manufacturers. An advantage of factoring is that it allows the company to pay the remaining amount of debt that could not have been paid earlier. Another advantage of factoring is that it saves a lot of time; the company may spend too much time raising money to pay off debt and cannot focus on other aspects of the business. A disadvantage of factoring may be that it can take time to complete, time that can be used much more productively within the business. Another disadvantage of factoring is that factoring companies tend to charge higher interest than a typical bank