Depending upon the industry, the company, and its accounting procedure, receivable financing techniques may be defined and grouped in numerous ways. But traditional accounting places receivable financing in one of four categories: Pledging: All invoices serve as collateral Assigning: Specific invoices rather than all invoices serve as collateral Factoring: A business sells invoices to a factoring company Discounting: A business sells invoices to a finance company at a reduced price