What Is the Difference Between Factoring Accounts Receivable and Using

What is the difference between factoring accounts receivable and using accounts receivable as collateral for a short-term loan?
Factoring is the collateral used when issuing commercial paper.
There is no difference.
Factoring involves selling the accounts receivable instead of using them to obtain a loan.
Factoring accounts receivable is accomplished through a finance company whereas using them as collateral is arranged with a bank.
Factoring involves agreeing to repurchase accounts receivable at a future date instead of using them as collateral to obtain a loan.