(b) An assignment of accounts receivable is a financing
arrangement whereby the owner of the receivables (assignor)
obtains a loan from the lender (assignee) by pledging the accounts
receivable as collateral. A factoring of accounts receivable
is basically a sale of, or borrowing on, the receivables. “Factors”
are intermediaries that buy receivables from companies (for
a fee) and then collect payments directly from the customers.
Thus, both of these are methods of generating cash from accounts