Explain the difference between the two approaches to account for receivables in the business cycle.

We discussed receivables and how we account for them in the business cycle. One of the concepts that we touch on is the securitization of receivables through factoring, either through selling or pledging receivables. ( Answer the following 3 questions and please cite your work )

1. Explain the difference between the two approaches.
2. Why would you choose one over the other?
3. Find an example of a company that does either one of the two and explain their approach