Distinguish between the following: 'Factoring' and 'Bill discounting'.

Distinguish between factoring and bill discounting Under a bill discounting arrangement, the drawer undertakes collecting the bills and remitting the proceeds to the financing hand, under factoring agreement, the factor collects client's bills. Bill discounting is always with recourse whereas factoring can be either with recourse or without recourse. The finance house discounting bills does not offer any non-financial services unlike a factor which finances and manages the receivable of a client. In case of bill discounting, the financier's income is discounting charges or interest whereas in case of factoring, the financier gets interest for financial services and commission for other allied services.