Factoring and invoice discounting fund the same invoices, but differ on who collects from the buyer
Both sell invoices to a finance provider at a discount. In factoring the provider usually runs the ledger and collects; in invoice discounting the seller keeps the ledger and the financing may be undisclosed to the buyer.
Receivables finance turns issued invoices into cash, a market FCI puts at EUR 4.04 trillion a year
Receivables finance lets a seller turn invoices it has already issued into cash before the buyer pays. The finance provider advances a share of the invoice, usually around 80% in factoring, and releases the balance less fees and discount when the buyer pays.