What is the difference between bank loans, finance leasing and factoring?

With finance leasing, the leasing company buys the equipment or the vehicle and leases it to you, with the right to own it at the end (so the business preserves its liquidity).

Factoring, on the other hand, means selling your deferred invoices to a factoring company so you receive the cash immediately, and the company then collects them from your clients later. These services are offered by banks through their affiliated companies.