There are two key differences when comparing confidential invoice discounting and invoice factoring. The first is that invoice discounting is a loan that is secured against your outstanding invoices, while invoice factoring is the process of selling your unpaid invoices. This nuance leads us to the second key difference. Because you sell your invoices in the factoring process, the factoring company then owns the outstanding invoices, putting the factor in charge of the collections process. Your customers then work with the factoring company to pay their invoices, rather than paying you. Conversely, in confidential invoice discounting, you maintain ownership of the unpaid invoices, so you maintain control over the collections process. This keeps your customers unaware of the financing relationship and keeps you in control.