Compare factoring, invoice discounting, and asset-based lending as working-capital financing.

All raise cash against receivables/assets but differ in control, disclosure, and scope. Factoring: you sell receivables to a factor who advances most of the value and (in some forms) manages collections; it can be disclosed (customers pay the factor) and may be non-recourse (factor takes the credit risk) — useful but customer-facing and can signal stress. Invoice discounting: you borrow against the receivables ledger but retain collection and control, and it's usually confidential (customers don't know) — cheaper signalling, but you keep the credit risk and it needs good ledger controls. Asset-based lending (ABL): a revolving facility secured against a broader pool — receivables and inventory (sometimes equipment/property) — sized by a borrowing base with advance rates per asset class, suited to larger or more capital-intensive borrowers and acquisitions. Trade-offs across all three: cost, recourse vs non-recourse (who bears bad debts), disclosure/customer perception, accounting (does it achieve true sale/derecognition or stay on balance sheet as a borrowing), and covenant/control intrusion. Choose by how much you value confidentiality, risk transfer, and the breadth of collateral.