'CloudSync', a rapidly growing SaaS (Software as a Service) startup, is experiencing cash flow difficulties due to late-paying enterprise clients. The finance director is considering either factoring or invoice discounting.

Which of the following statements correctly distinguishes factoring from invoice discounting?

Factoring is always with recourse, meaning CloudSync retains the bad debt risk, while invoice discounting is always non-recourse.

Factoring usually involves the factor taking over the administration of the sales ledger, whereas invoice discounting does not.

Invoice discounting is highly visible to customers, whereas factoring is strictly confidential.

Factoring provides an immediate cash advance against invoices, whereas invoice discounting only pays when the customer settles the invoice.