Using Banks for Factoring

I read the blog which wrote about this...And I got some more informations about Financing!....

First of all what is Factoring???
Factoring is a financial tracsation whereby a business sells its accounts receivable (i.e., invoices) at a discount.
Factoring is easy to be misunderstood with Bank loan.And I have just found out what are the differences about factoring and bank loan?

• The emphasis is on the value of receivables,not the firm's credit worthiness.
• Factoring is not a loan,it's the sell of the financial assets.
• A bank loan involves two parties whereas factoring involves three.

The factor usually charges the seller a service charge, as well as interest based on how long the factor must wait to receive payments from the debtor.

So as I know,I have done all of the homework....ahh no no no...one left......Because...I'm not doing Sociology....^^...And last ones are about Sociology....!